The Netherlands will take a troublesome stance on implementing new European Union (EU) cryptocurrency laws, 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 troublesome to pin down and are liable to fraud and manipulation. Their worth is basically based mostly on hype and often don’t have any intrinsic worth. Within the Netherlands, the connection between the cryptocurrency world and the normal monetary sector remains to be restricted.
In line with a survey by AFM, regardless that the variety of cryptocurrency house owners 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. In addition they mentioned they knew it was dangerous they usually might afford to lose. Nonetheless, some cryptocurrency house owners take extra dangers than they will 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’ll take a sturdy regulatory strategy to make sure the cryptocurrency business 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 pacesetter in monetary regulation and innovation, and the AFM’s stance is in keeping 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 business is each efficient and proportionate.
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