• The Netherlands‘ financial regulatory body, AFM, plans to maintain a strict attitude towards the Dutch digital assets sector despite looser European rules.
• AFM Chair Laura van Geest commented that cryptocurrencies are difficult to fathom, vulnerable to deception, fraud and manipulation.
• Despite the EU’s looser MiCA regulations, the Netherlands will not be lowering their supervision levels in order to compete with other countries.
Dutch Financial Regulator Vows Strict Treatment of Crypto Business Under MiCA
The financial regulatory body of the Netherlands intends to maintain a tough attitude towards the Dutch digital assets sector despite looser European rules. The head of the agency overseeing the industry doesn’t think crypto is good news and highlights its flaws in an article.
Head of Dutch Financial Authority Says Cryptos Are Difficult to Fathom, Vulnerable to Fraud
Most countries in the West are „tightening the reins“ on crypto but a total ban is „difficult to imagine“, according to Chair of the Dutch Authority for the Financial Markets (AFM), Laura van Geest. In her column devoted to cryptocurrencies in Het Financieele Dagblad, she remarked that although cryptos have been given more lenient treatment than existing financial products under EU’s Markets in Crypto Assets (MiCA) legislation, they remain difficult to fathom and vulnerable to deception, fraud and manipulation. Van Geest also pointed out that crypto asset values are mainly based on speculation and prices can fluctuate considerably. Consumers have been warned about these risks by regulators as well as by AFM estimates which show that around 2 million people own crypto assets in The Netherlands with most investing less than €1,000.
EU Regulations Remain Less Strict for Cryptocurrencies
EU institutions and member states reached an agreement on MiCA last year which introduces rules for crypto service providers across Europe who must obtain regulatory approval before operating within any common market. However, even though this legislation is less strict compared with existing financial products regulations, Laura van Geest insists that AFM will not lower their supervision levels so as not compete with other countries: „We choose [not]…to drop our supervision“. This stance may lead some companies looking elsewhere or attempting to enter through another European jurisdiction instead.
Crypto World Still Limitedly Linked with Traditional Financial Sector
Van Geest further noted that there is still only a limited link between traditional finance world and cryptocurrency within The Netherlands; however warnings from regulators about potential risk have come true over time as more people become involved with cryptos causing price volatility in markets around the world due largely due speculation rather than actual use cases for tokenised assets.
Conclusion
In conclusion it appears as if The Netherlands is taking a tougher stance on cryptocurrency use compared with many other EU states even if this means potentially cutting off access from certain companies looking for entry into its market through different jurisdictions – something which may ultimately prove beneficial down line when it comes regulation enforcement and consumer protection within this space .