The Dutch cryptocurrency exchange, Bitonic, has just taken legal action against its country's central bank. This is all due to a controversial cryptocurrency wallet verification law. Bitonic vs. the central bank Dutch bitcoin exchange platform, Bitonic, is demanding the suspension of a cryptocurrency wallet verification rule that was passed by the Dutch central bank. In November 2019, De Nederlandsche Bank (DNB) began requiring cryptocurrency exchanges in the country to verify their users using strict KYC protocols. The new rules also included verification steps for wallets to withdraw digital currencies, which Bitonic describes as very onerous. At the time, Bitonic was only one of three companies in the market with a license from DNB. The company says that GNI reportedly failed to address the issues it noticed with the controversial KYC rule. The exchange also revealed that an independent auditing firm even concluded that the central bank's actions had no legal value. For Bitonic, the introduction of an extensive portfolio verification protocol violates existing customer privacy laws. - We believe it is critical that the judge consider the DNB's position to clarify whether the [ bank's] requirements are reasonable," the company added in its release. Commenting on the purpose of the lawsuit, Bitonic's announcement reads: "Our goal is to be able to quickly stop the complex processing of personal data imposed on us. We want to return to a situation where we determine ourselves on the basis of [risk analysis] whether we will ask the customer to verify the portfolio." Alliance of exchanges A company spokesperson also told Cointelegraph that the company regrets being forced to seek redress in court. The action was reportedly necessary given GNI's reticence to dialogue about the issues. A Bitonic representative also revealed that other exchanges have expressed support for such legal action. - We don't know if similar proceedings are being prepared by other parties, but we believe the court will see the broader significance [of the case] not only for the cryptocurrency industry but also for its customers, the spokesperson said. Tags Bitonic exchange cryptocurrencies
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