The Netherlands will take a troublesome stance on new European Union (EU) cryptocurrency laws, even when some suppliers transfer elsewhere, based on Laura van Geest, chairwoman of the Netherlands Authority for Monetary Markets (AFM).
Cryptocurrencies will not be excellent news as a result of they’re tough to establish and susceptible to fraud and manipulation. Their worth is essentially primarily based on hype and normally has no intrinsic worth. Within the Netherlands, the connection between the cryptocurrency world and the normal monetary sector remains to be restricted.
In accordance with the AFM survey, though there are fewer than 2 million cryptocurrency homeowners, most of them invested lower than 1,000 euros in hedge funds, and little or no borrowed cash. Additionally they stated they knew it was dangerous and will afford to lose. Nonetheless, some cryptocurrency homeowners are taking up extra threat than they will afford.
Van Geest additionally stated that the EU’s Marketplace for Cryptocurrencies (MiCA) regulation can solely partially mitigate the danger. Whereas the AFM will encourage innovation, it’ll take a robust regulatory method to make sure that the cryptocurrency trade adheres to excessive requirements of conduct.
Due to this fact, AFM calls on corporations to transparently consider their actions and cooperate with regulatory authorities in an effort to implement the brand new EU guidelines.
The Netherlands has lengthy been a frontrunner in monetary regulation and innovation, and the AFM’s stance is consistent with the nation’s efforts to remain on the forefront of regulatory change within the cryptocurrency house.
The AFM additionally works with different EU regulators to make sure a coordinated method to cryptocurrency regulation and to make sure that the regulatory framework for the EU cryptocurrency trade is efficient and proportionate.
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