Dutch Monetary Market Watchdog to Take Robust Stance on EU Cryptocurrency Rules

The Netherlands will take a troublesome stance on imposing new European Union (EU) cryptocurrency rules, even when some suppliers transfer elsewhere, in response to Laura van Geest, chairman of the Netherlands Authority for the Monetary Markets (AFM).

Cryptocurrencies are usually not excellent news as a result of they’re tough to pin down and are liable to fraud and manipulation. Their worth is basically primarily based on hype and normally don’t have any intrinsic worth. Within the Netherlands, the connection between the cryptocurrency world and the normal monetary sector continues to be restricted.

In line with a survey by AFM, although the variety of cryptocurrency homeowners is estimated at lower than 2 million, most have invested lower than 1,000 euros in speculative funds and only a few have borrowed cash. Additionally they mentioned they knew it was dangerous and so they may afford to lose. Nonetheless, some cryptocurrency homeowners take extra dangers than they’ll afford.

Van Geest additionally mentioned that the EU’s Market in Cryptoassets (MiCA) regulation can solely partially tackle its dangers. Whereas the AFM will encourage innovation, it would take a sturdy regulatory strategy to make sure the cryptocurrency trade adheres to excessive requirements of behaviour.

The AFM subsequently urges firms to be clear about their actions and to work with regulators to implement new EU guidelines.

The Netherlands has lengthy been a frontrunner in monetary regulation and innovation, and the AFM’s stance is in line with the nation’s efforts to remain on the forefront of regulatory developments within the cryptocurrency house.

The AFM can be working with different EU regulators to make sure a coordinated strategy to cryptocurrency regulation and to make sure that the EU regulatory framework for the cryptocurrency trade is each efficient and proportionate.