DTSP License: What It Is, Why It Matters for Crypto Exchanges

When a crypto exchange claims it’s DTSP license, a financial authorization granted by the Dutch Central Bank (De Nederlandsche Bank) under the Dutch Anti-Money Laundering and Counter-Terrorist Financing Act. Also known as Digital Token Service Provider license, it isn't just paperwork—it's a legal requirement that forces exchanges to prove they know their users, secure funds, and report suspicious activity.

This license isn’t optional for exchanges targeting European customers. If an exchange operates from the Netherlands or serves Dutch users, it must hold a DTSP license to legally handle crypto assets. Without it, the exchange is operating illegally—and that puts your money at risk. The license forces exchanges to use HSM key management, hardware-based systems that protect private keys from internal and external hacks, enforce KYC compliance, strict identity checks that prevent fraud and money laundering, and maintain audit trails that regulators can review at any time. These aren’t buzzwords—they’re real safeguards that separate licensed platforms from the wild west of unregulated exchanges.

Look at what happened with Russian exchanges like Garantex and Grinex: they operated without proper oversight, used unlicensed stablecoins like A7A5 to bypass sanctions, and got shut down by OFAC. Meanwhile, exchanges with DTSP licenses are held to strict standards—they can’t just disappear overnight. That’s why users who care about safety look for this license before depositing funds. It’s not a guarantee of success, but it’s the minimum bar for legitimacy. If you’re trading on a platform that doesn’t mention DTSP, ask why. Chances are, they’re avoiding scrutiny.

What you’ll find in the posts below are real examples of how regulation shapes crypto. From exchanges that failed because they ignored compliance, to tools like HSM and KYC that make licensed platforms safer, these articles show what’s really happening behind the scenes. You’ll see how crypto enforcement is changing, why some airdrops vanish without trace, and how the most secure exchanges don’t just talk about security—they prove it with licenses, audits, and transparent practices. This isn’t theory. It’s what keeps your crypto safe—or doesn’t.