One of the Netherlands’ oldest Bitcoin brokers raises €11m in funding

The Dutch Bitcoin broker BTC Direct attracted €11m from private investors in a Series A funding round. According to the statement, these are the first external investments in the company, which has been operating since 2013.

Big news: BTC Direct raises €11 million in a funding round. #Bitcoin https://t.co/yPR7v5U2hn

— BTC Direct (@btcdirect) October 16, 2020

BTC Direct operates the BLOX crypto-trading app aimed at retail investors. The firm is now rolling out a trading platform for high-net-worth individuals, corporates and investment funds.

The funds raised for BTC Direct will be used to expand the business and increase the workforce.

“Our team currently numbers 50 people, but it is likely to double in the next 18 months,” said BTC Direct CEO Mike Hatting.

The Dutch central bank began regulating cryptocurrency companies under the EU’s Fifth Anti-Money Laundering Directive (AMLD5), which took effect in January 2020.

The regulator’s application of AMLD5 put local industry players at a disadvantage relative to other participants in the financial sector. Some companies, such as the Bitcoin service Bittr or the XRParrot exchange, were forced to cease operations.

In May, the central bank required industry players to undergo mandatory registration.

According to Hatting, the tighter regulation poses no problem for BTC Direct.

“As a co-founder of VBNL, the Dutch trade association of cryptocurrency companies, we actively support engagement with lawmakers and regulators. Therefore, mandatory registration came as no surprise to us. We are currently doing everything possible to meet AMLD5 requirements that took effect earlier this year,” he said.

Earlier in October, the Dutch central bank registered the first cryptocurrency company. The regulator’s first licence holder was Amsterdam Digital Asset Exchange (AMDAX).

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