Tax Summary:

1. Personal income tax – from 36.93% to 49.5%
2. Corporate income tax – 19% on the first €200,000 of taxable income, 25.8% on exceeding income 

What law/s governs VASP activities?

1. Anti-Money Laundering and Anti-Terrorist Financing Act
2. Implementation Act amending the fourth anti-money laundering directive (link 1; link 2; link 3) (Dutch-only) 
3. Economic Offences Act
4. AMLD5

What activities are included in VASP services?

The following crypto service providers are regulated in the Netherlands, according to the Money Laundering and Terrorist Financing Prevention Act:

1. natural persons or legal entities providing professional or commercial services for the exchange between virtual currency and fiat currency;
2. natural persons or legal entities that offer professional or commercial custodian wallets.

At the moment the entities who offer crypto-to-crypto exchanges are still not regulated.

Who is the VASP regulator?

1. De Nederlandsche Bank

What is the procedure for registering a VASP for a local company?

To register, the company must file the following information with DNB:

1. General company information, including articles of association (in Dutch) and KVK extract.
2. Foreign companies must include a certified copy of the notarial deed that contains the company’s articles of association. Also provide an extract from the Business Register from the country of incorporation. These documents must be in English.
3. A company plan, outlining the strategy, an overview of the activities and a SWOT analysis.
4. Composition of the board, including organizational and control structure.
5. Delineation of the business operations and management, including rules and regulations, audit, notification procedure, secondment, training, and education.
6. Description of business operations.
7. A file per board member, demonstrating their fitness and propriety.

Please follow the link to review the Registration forms.

Is there any specific authorization required for a VASP from another EU member state to provide services in this jurisdiction?

Firms not registered with DNB are not permitted to operate as a crypto service provider pursuant to Section 23c(3) of the Anti-Money Laundering and Anti-Terrorist Financing Act .

With effect from 21 May 2020, DNB is the authority monitoring crypto service providers’ compliance with the requirements imposed by the Wwft and the Sanctions Act (Sanctiewet 1997 – Sw). DNB has supervisory powers and enforcement powers. Pursuant to the Wwft, it can issue an instruction or an order subject to penalty or impose a fine in the event of non-compliance with the registration duty set out in Sections 23b and 23c of the Wwft. Existing crypto service providers that make use of the transitional regime are subject to supervision from the moment the Act implementing the AMLD5 enters into force, regardless of the time of registration.

Failure to register qualifies as an economic offense under the Economic Offences Act (Wet op de economische delicten), which DNB may report to the Public Prosecutor’s office.

What is the liability for the activities of a VASP from another EU member state without local registration/authorization in this jurisdiction?

A fine ranging from €5,000,000 to €10,000,000 is stipulated by Article 31 of the Wwft (Wet ter voorkoming van witwassen en financiering van terrorisme).

Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.