Crashed crypto exchange FTX was operating in the Dutch market without a licence, the central bank has confirmed to news website Nu.nl.

FTX was one of the biggest trading platforms for digital currencies in the world but has fallen apart over the past few days, leaving the many investors who used its services unable to access their cash. The collapse of FTX also prompted drop in crypto currency exchange rates and confidence in the sector worldwide.

Some two million people in the Netherlands are said to invest in digital currency and many of them may have now have lost their money. While most have invested small amounts ‘we know some people have put in large sums,’ the central bank said.

Last year the central bank fined sector peer Binance €3.3 million for operating illegally in the Netherlands. Companies which trade in crypto currency have been required to register since May 2020 under legislation aimed at stopping money laundering and the financing of terrorism.

The central bank declined to say if it had taken action against FTX, saying it could not comment on individual cases.

The central bank said earlier this month that international rules are needed to regulate the use of crypto currencies such as Bitcoin, Ethereum and Tether and it is of the ‘utmost importance’ this is done quickly.

Effective regulation will help ensure the added value offered by crypto technology can be leveraged while avoiding the risks associated with speculation, the bank said at the presentation of a new report on the policy response to crypto assets.