Dutch Financial Markets Authority Chairman Criticizes EU’s Cryptocurrency Regulation Law (MiCA)
The Dutch Authority for Financial Markets (AFM) has taken a hard stance on cryptocurrency regulations, despite the strict regulations already in place in the Netherlands.
On March 18th, Laura Van Geist, the chairman of the AFM, expressed her opinion that the EU’s cryptocurrency regulation law, MiCA, will only partially address cryptocurrency risks. She emphasized that the country will take a hard line regarding cryptocurrency regulation, even if companies are outflowed abroad, and “will not lower the standards to attract business.”
Van Geist believes that cryptocurrency is difficult to grasp and vulnerable to fraud and manipulation, and its value is mainly based on speculation, which has no potential value. While the MiCA law includes the requirement that wallet providers and exchanges obtain licenses to operate in the EU within 18 months, Van Geist argues that law enforcement does not need to be so lenient.
This is not the first time that the AFM has taken a strong stance against cryptocurrencies. In May 2022, Paul-Willem van Gerwen, Dutch AFM head of capital markets and transparency supervision, called for individual investors to be banned from trading in cryptocurrency derivatives. While the UK has already banned individuals from trading in crypto derivatives in 2020, the Netherlands has not yet taken action.
It is clear that the Dutch regulatory authorities are taking a cautious approach when it comes to cryptocurrency, and they are not willing to compromise on their standards to attract business. The government is willing to go the extra mile to protect investors and ensure that the cryptocurrency market is free from fraudulent practices and manipulation. With the increasing popularity of cryptocurrencies, it remains to be seen whether other countries will follow the Dutch example and tighten their regulatory oversight of this nascent market.
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