The interest in cryptocurrency has been growing in the Netherlands. This European nation ranked first in CryptoManiak’s list of countries with the most cryptocurrency-related searches. It is helped by the fact that the Dutch government is not outright hostile towards cryptocurrencies.
In fact, they recognize the potential of blockchain technology and encourage public-private partnerships for the same. The De Nederlandsche Bank(DNB) and the Dutch Authority for the Financial Markets(AFM), though, have historically been sceptical of cryptocurrencies.
They have repeatedly warned people about the risks involved in cryptocurrency trading and stated that cryptocurrencies cannot be used as a medium of exchange due to their volatile nature.
Even so, the Netherlands has never banned cryptocurrencies. Virtual asset service providers(VASPs) can offer their services in the country if they fulfill all the conditions put forward by the DNB and get themselves registered with it.
This is perhaps the reason why many local and international VASPs have started operating in the Netherlands.
Top 5 Cryptocurrency Exchanges in the Netherlands
The DNB has some strict requirements for crypto exchanges operating in the Netherlands. We bring you a list of some prominent registered exchanges working in the country.
Coinbase
Coinbase, the world’s second-largest cryptocurrency exchange, obtained regulatory approval from the DNB in 2022. In its home country of the USA too, it is a publicly traded company known for being the first major crypto business to publicly list on the NASDAQ.
Coinbase’s basic version has a very simple interface with a prominent Buy/Sell feature. You can buy your preferred cryptocurrency in a few minutes with the EUR. There are 100+ cryptocurrencies for you to choose from here.
If you want advanced trading features, Coinbase Pro has you covered. It offers charting and market tracking features as well as services to manage multiple portfolios.
When you trade on Coinbase, you will pay fees depending on the order size, the payment method used, the market conditions at the time of the trade and other such factors. However, you will have to pay a flat 1% transaction fee only if you have a Coinbase Commerce account.
Features
✔️Has over 100 cryptocurrencies for trading
✔️In-built wallet for storing cryptocurrencies and NFTs
✔️Coinbase Commerce for businesses to accept crypto payments
✔️Has a brokerage platform for digital assets
Pros and Cons
✅Lots of coins available ❌Has been fined by the DNB
✅User-friendly layout ❌Takes high commission for staking
✅Crypto trading tutorials ❌Fees can be high on basic version
✅Cloud services for developers
Trading Fees
Trading fees for Coinbase
Customer Reviews
Coinbase is a secure exchange
Coinbase has a complicated verification system
Why We Picked It
Coinbase is a publicly listed safe and secure exchange. Its design is very intuitive and the platform is easy to navigate. Also, you can head over to Coinbase Pro if you want more advanced trading features. It even has tutorials to help you familiarise yourself with the platform.
eToro
Not a cryptocurrency exchange per se, eToro started out as a simple online trading platform and now has 3,000+ assets including cryptocurrencies that are available for trading and investment.
While eToro has a limited number of cryptocurrencies, it wins in the transparency department. It is completely open about the fees it charges and there are no hidden charges.
Further, it is regulated by the Financial Conduct Authority(FCA) in the UK and the Cyprus Securities and Exchange Commission(CySEC) in Cyprus.
eToro was also one of the first places to offer copy trading where you get to copy strategies of high-performing traders without having to study complex trading strategies. It promises its customers a unique social trading experience and the opportunity to practice trading before going on the main platform.
Features
✔️Social trading platform
✔️Has 75+ cryptocurrencies for trading
✔️Uses 2FA, encryption and masking technologies for security
Pros and Cons
✅Access to copy trading ❌Limited cryptocurrencies
✅Strictly regulated platform ❌Charges inactivity fees
✅Debit card deposits are free
✅Can do demo trading
Trading Fees
Fees for eToro
Wallet fees for eToro
Customer Reviews
eToro has a wide variety of assets available
eToro can sometimes be hard to navigate
Why We Picked It
eToro offers not just cryptocurrencies but also stocks and ETFs. Therefore, if you want to invest in different asset classes on one platform, you should check out eToro. Besides being a global platform, it offers a unique social trading experience that you may not find anywhere else.
Bitvavo
Bitvavo is one of the leading European cryptocurrency exchanges located in Amsterdam. It has 180+ digital assets for you to choose from including leading crypto coins such as Bitcoin, Ethereum, and Dogecoin.
One of the advantages of this exchange is its low trading fee which ranges from 0.03% to 0.25%. Bitvavo is perhaps the best place to buy crypto with Euro as it supports several European payment methods such as Sepa, iDeal, SoFort and also PayPal in the Netherlands.
Bitvavo is a safe and reliable exchange as it has been approved by the DNB and complies with all AML regulations. Among its defining features, Bitvavo guarantees reimbursement of up to €100,000 in case the users suffer a loss of funds because their account was compromised.
Features
✔️Home-grown exchange
✔️180+ cryptocurrencies available
✔️Charges maker and taker fees
Pros and Cons
✅Supports several payment ❌No derivatives trading
methods ❌KYC process can be lengthy
✅Good collection of coins
✅Intuitive mobile app
✅Facilitates direct Euro transfers
Trading Fees
Bitvavo trading fees
Customer Reviews
Bitvavo is an easy-to-use platform
Bitvavo does not have the best customer support
Why We Picked It
Bitvavo is a native Dutch exchange that is a perfect choice if you do not plan on doing anything more than buying some cryptocurrency. It has a decent variety of coins, complies with all AML/CFT regulations and offers good staking opportunities.
Anycoin Direct
Anycoin Direct is considered to be more of a cryptocurrency broker than an exchange. Located in the Netherlands, it is an approachable platform with an intuitive design that makes crypto trading easy for everyone.
An interesting thing about Anycoin Direct is that it does not charge any maker or taker fee. Instead, there is a service fee to be paid on every buy, sell or trade order.
In 2021, the platform upgraded to Anycoin Direct 2.0 which introduced new features such as a step-by-step guide for buying and selling crypto, in-depth guides for individual cryptocurrencies and a smart support assistant to assist users with their queries.
Features
✔️Exclusively serves the European market
✔️Has more than 65 cryptocurrencies for trading
✔️No maker-taker fee system
Pros and Cons
✅Multiple payment methods ❌Less cryptocurrencies available
available ❌Has no in-built crypto wallet
✅Quick sign-up process
✅Great customer support
Trading Fees
Service fee for Anycoin Direct
Customer Reviews
Anycoin Direct has a responsive customer service
Verification can be difficult on Anycoin Direct
Why We Picked It
Anycoin Direct focuses on catering to the European market and Europe-based traders. It has a simple crypto buying/selling system and even features step-by-step guides to better guide you through the whole process.
Bitpanda
Like Anycoin Direct, Vienna-based Bitpanda is more of a broker that offers cryptocurrencies, stocks, ETFs, commodities and precious metals for trading than a strict cryptocurrency exchange.
The availability of different types of assets is good news for traders that want to maintain a diversified portfolio in one place. One of the most unique products offered by Bitpanda is its crypto index fund to enable traders to branch out their investments into cryptocurrency as well.
Bitpanda charges a 1.49% premium for buying and selling cryptocurrency. On Bitpanda Pro, however, the highest maker fee is 0.15% and the highest taker fee is 0.25%. There is no maker-taker fee for trades below €1,000.
Features
✔️Multi-asset brokerage
✔️Keeps funds in offline wallets
✔️Has a Visa card to use investments for payments
Pros and Cons
✅Cryptocurrency index funds ❌Higher fees
✅Cross-asset trading ❌Limited cryptocurrencies on Bitpanda Pro
✅User-friendly platform
✅High liquidity
Trading Fees
Premium on Bitpanda
Bitpanda Pro trading fees
Customer Reviews
Bitpanda is a secure platform to trade on
Bitpanda has higher fees than other exchanges
Why We Picked It
Bitpanda’s crypto index funds can be a good option if you’re looking to diversify your investment portfolio. It is a beginner-friendly platform with some useful educational resources. Bitpanda complies with all European data protection laws which is a big plus.
Top 5 Decentralized Cryptocurrency Exchanges in the Netherlands
Decentralized Exchanges(DEXs) are platforms that enable peer-to-peer transactions among crypto traders. Unlike centralized exchanges, they have no central order books and don’t even require any identifying information before allowing trading.
UniSwap
UniSwap is the first name that comes up when talking about DEXs. Developed with the help of the Ethereum foundation and other venture capitalists, it is a DeFi platform that uses the Automated Market Maker(AMM) protocol for the core functions.
There are smart contracts that detail everything about the process of providing liquidity, creating liquidity pools and the standard method of swapping assets.
Since UniSwap runs on the Ethereum network, you can swap innumerable ERC-20 tokens on it. You can connect any major crypto wallet to the platform and just start trading. No KYC no other information needed.
On UniSwap, you pay fees depending on the nature of the pair being swapped. You may fall into any of the three categories- 0.05%, 0.30% and 1% depending on whether the pair you’re swapping is a ‘safer’ one or a more ‘wild’ pair.
Features
✔️Runs on the Ethereum network
✔️Has native token UNI
✔️Three-tier fee structure
✔️Open-source code
Pros and Cons
✅No KYC confirmation ❌Coins are not vetted
needed ❌Only cryptocurrencies accepted
✅Can trade ERC-20 tokens
✅Bug bounty program
✅Community governance by
UNI holders
Trading Fees
UniSwap fee tiers
Customer Reviews
UniSwap is one of the less risky DEXs
Gas fees can be very high on UniSwap
Why We Picked It
UniSwap is a popular and established DeFi platform that works with almost all major crypto wallets. You don’t need to give any of your personal information but just connect a Web3 wallet to start trading.
PancakeSwap
PancakeSwap is similar to UniSwap as it is also an AMM-based exchange. However, PancakeSwap runs on the BNB Chain instead of Ethereum. This gives it an edge over UniSwap because it does not face issues such as slow transaction speed due to network congestion or high gas fees.
You pay a simple flat 0.25% transaction fee for trading on PancakeSwap. It is even lower for StableSwap where you can trade stable pairs with less slippage and more efficiency.
You can trade several BEP-20 tokens on PancakeSwap, stake CAKE tokens and participate in Initial Farm Offerings(IFOs) where you can get early access to new tokens.
Features
✔️Runs on the BNB Chain
✔️Has native token CAKE
✔️Yield Farms for staking tokens
✔️Governed by CAKE holders
Pros and Cons
✅No registration needed ❌No customer service mechanism
✅Can trade BEP-20 tokens ❌Cannot trade Bitcoin
✅Early access to coins with IFOs
✅Governed by CAKE holders
Trading Fees
PancakeSwap fee breakdown
Customer Reviews
PancakeSwap has low fees and no KYC
PancakeSwap has no customer service
Why We Picked It
PancakeSwap has some unique products on offer for its customers. You can immediately start trading on this exchange without having to register an account. Further, you even get to have a voice in its governance if you hold the CAKE token.
dYdX
dYdX is a next-generation DeFi platform. It uses an Ethereum Layer 2 solution called StarkWare to provide a fast and seamless trading experience. Using StarkWare also enables it to ensure better security and privacy on the platform.
While mainly meant for derivatives trading, you can execute spot and margin trades as well on dYdX. It has very low fees with the highest maker and taker fees being 0.020% and 0.050% respectively.
Plus, dYdX has nearly no gas fee and pretty dynamic interest rates. There is also a slick mobile app and quick withdrawals without any wait time.
Features
✔️Developed on the Ethereum network
✔️Uses StarkWare Layer 2 solution
✔️Has native token DYDX token
✔️Compatible with several devices
Pros and Cons
✅Fast transactions ❌Low number of trading pairs
✅No fees for low-volume trades
✅Zero gas fee when trading
perpetuals
Trading Fees
Maker-taker fees for dYdX
Why We Picked It
dYdX is a good option for derivatives traders as it has low fees, dynamic interest rates and no gas fees. Both the web version and the mobile app have a slick layout. It ensures a seamless experience with a quick confirmation of transactions on the blockchain.
Balancer
Balancer is a popular option among DEXs due to the variety of cryptocurrencies it supports and the high interest in its liquidity pools. It has two types of pools- public and private. The difference is that while anyone can provide liquidity in a public pool, only the pool creator can add or withdraw assets in a private pool.
Further, the pools on Balancer are multi-token i.e. more than one token can be added to the liquidity pools. The fees are decided by the pool creator on Balancer and can range from 0.0001% to 10%.
Features
✔️Developed on Ethereum
✔️Has native token BAL
✔️Liquidity pools are multi-token pools
Pros and Cons
✅Programmable liquidity pools ❌No learning material available
✅Advanced automated portfolio ❌No mobile-friendly version
manager
✅Withdrawals are fast
Trading Fees
Information about Balancer fees
Why We Picked It
If you have a diversified portfolio and an appetite for risk, you can check out Balancer. It offers some attractive interest rates and the freedom to customize the pools as per your needs.
Curve Finance
Curve Finance is a no-nonsense exchange that facilitates stablecoin trades. This makes it quite a safe and low-risk DeFi platform. While developed on Ethereum, Curve Finance is compatible with many other chains like Avalanche, Polygon, Arbitrum and Fantom.
Curve Finance has no maker or taker fee though it does charge a ‘swap fee’ for transactions. It is generally 0.04% though it can go as high as 0.4%. You may also have to pay a withdrawal fee ranging from 0.01% to 0.5% depending on the liquidity pool.
Features
✔️Developed on the Ethereum network
✔️Has native token CRV
✔️Provides liquidity for stablecoin pairs
Pros and Cons
✅Can run on multiple chains ❌No leverage or margin trading
✅Customer controls private keys ❌Needs prior DeFi experience for
✅Has low swap fees navigation
Trading Fees
Information for Curve Finance fees
Why We Picked It
Curve Finance is perfect for traders looking for a low-risk option. It is a stable, efficient and non-custodial exchange with low fees, a minimalist design and high liquidity.
Is Crypto Legal in the Netherlands?
There is no law explicitly forbidding the use or trade of cryptocurrencies in the Netherlands. The Dutch authorities are of the view that regulation is better than outright prohibition in the case of cryptocurrencies. They, therefore, strive to regulate crypto trade in the country.
In 2018, the Dutch Finance Minister outlined the need to regulate cryptocurrency trade on a European or international level. Two years later in 2020, cryptocurrency exchanges and wallet providers were brought under the fifth European Anti-Money Laundering directive via the Dutch AML Act.
This means that crypto exchanges need to get registered with the De Nederlandsche Bank(DNB) and comply with all AML procedures including KYC verification and monitoring transactions for suspicious activities.
While the DNB and the Dutch Authority for the Financial Markets(AFM) do not recognize cryptocurrency as legal tender, they have divided them into three categories- a)transaction crypto; b)utility crypto and c)investment crypto. Among these three, some investment cryptocurrencies also qualify as financial instruments under the Financial Supervision Act(FSA).
The Dutch AML Act, the FSA and the Prospectus Regulation form the core of cryptocurrency regulation in the Netherlands. Apart from the AML Act, none of the other laws contain specific provisions for cryptocurrencies and the general regulatory framework is applied to them.
On the taxation front, gains on digital assets including cryptocurrencies are taxable in the Netherlands. Any capital gains on digital assets by a private individual or a company are subject to income tax for the former and corporate tax for the latter.
It is expected that the framework for cryptocurrency regulation would be standardised across most of Europe once the European Union’s(EU) Markets in Crypto-Assets(MiCA) bill comes into force in 2024.
Conclusion
Cryptocurrency exchanges do not face many problems in the Netherlands as long as they comply with all the regulatory requirements. While not a mainstream industry, a section of the Dutch population does hold an interest in cryptocurrencies. For such people, there is no dearth of options when it comes to platforms for crypto trading.