The De Nederlandsche Bank (DNB), the central bank of Netherlands, has cautioned country’s banks to be aware of the possible risks of engaging with Bitcoin-related businesses.

The central bank made it clear that that banks and payment companies would be liable for any risks associated with the use of virtual currencies, as they only facilitate processing of transactions related to digital currencies.

A statement by DNB was cited by as saying that the banks should be hesitant about doing business with Bitcoin-related businesses because of its anonymity, which could be used to skirt anti-money laundering laws.

Expressing the concern about possible violation of anti-money laundering rules, the central bank is worried about the risks presented to the nation’s financial institutions by doing bitcoin related business.

DNB said, "In 2014, DNB will investigate whether banks and payment institutions are actively involved with new payment products such as virtual currencies and it will assess the degree to which these institutions control/manage their integrity risks."

"The control should include effective measures with respect to client acceptance and the monitoring of new innovative suppliers," DNB added.

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The move is seen as a big blow for the flourishing bitcoin industry in the Netherlands.