Dutch financial regulator promises strict treatment of crypto trades under MiCA regulation
The financial regulator of the Netherlands intends to maintain a tough stance on the Dutch digital asset sector despite looser European regulations. The head of the agency that oversees the industry doesn’t think crypto is good news and highlights its shortcomings in an article.
Dutch Treasury chief says cryptos are difficult to fathom and prone to fraud
Most countries in the west are “tightening the reins” on crypto, but a total ban is “hard to imagine,” Dutch Financial Markets Authority (AFM) chair Laura van Geest wrote in a column cryptocurrencies the business newspaper Het Financieele Dagblad.
However, despite tightening in the final stages of negotiations on EU legislation on markets for crypto assets (MiCA), upcoming regulations for cryptocurrencies remain less stringent than those for existing financial products, the executive noted, stating:
We don’t think cryptos are good news. They are difficult to read, prone to deception, fraud and manipulation.
Laura van Geest then pointed out, as critics usually do, that the value of crypto assets is mostly based on speculation and prices can fluctuate significantly. “We didn’t hide our opinion. Parties in the financial sector have been made aware of their responsibilities and consumers have been warned of the risks,” she added.
According to AFM’s own estimates, the number of crypto owners in the Netherlands is close to 2 million and most of them invest less than 1,000 euros. Van Geest also acknowledged that the connection between the crypto world and the country’s traditional financial sector is still limited.
EU institutions and member states agreed on MiCA last year. It is rolling out rules for crypto service providers across the 27-strong bloc, and they need regulatory approval to operate in the common market.
“Do we then lower our oversight to the lowest level to be able to compete with other countries? Or shall we say: people who apply for a Dutch license visit the AFM precisely because of our solid image? We opt for the latter,” emphasized the head of the Dutch tax authority.
Laura van Geest stressed that the Netherlands is going this route, even if it means that some of these companies will look elsewhere and try to enter the Dutch market via another European jurisdiction.
“Regulators’ warnings have come true during the crypto winter,” Van Geest also said in her article, which came out as Belgium’s former Finance Minister Johan Van Overtveldt urged governments to ban cryptocurrencies outright. He was referring to the current banking crisis, which includes the collapse of two crypto-friendly banks.
Do you expect other governments in Europe to implement stricter crypto rules than mandated in MiCA? Do share your thoughts on this topic in the comments section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, Dutchmen Photography / Shutterstock.com
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Source: Crypto News Deutsch
