Netherlands Vows to Strictly Handle Crypto Businesses Under MiCA

Laura van. Geest, chairman of the Netherlands Authority for the Financial Markets (AFM), noted in a column devoted to cryptocurrencies that most Western countries are “tightening controls” on cryptocurrencies, but that it’s “hard to imagine” banning them entirely Business Daily Het Financieele Dagblad.

However, despite tensions in the final stages of EU Markets in Cryptocurrency Assets (MiCA) legal negotiations, the upcoming regulations will still be less stringent for cryptocurrencies than existing EU financial products, the executive commented, saying:

“We don’t think encryption is good news. They’re incomprehensible and easily tricked, tricked and manipulated.

Laura van Geest then pointed out that, as critics often do, the value of crypto assets is largely based on speculation and prices can fluctuate wildly.

“We do not hide our assessment. All parties in the financial sector have been made aware of their responsibilities and consumers have been warned of the risks.”

According to the AFM’s own estimates, the number of cryptocurrency holders in the Netherlands is less than 2 million, most of whom have invested less than 1,000 euros. Van Geest also acknowledged that the connection between the cryptocurrency world and the country’s traditional financial sector remains limited.

EU institutions and member states reached an agreement on MiCA last year. It sets the rules for crypto service providers in the powerful 27-member block, who need regulatory approval to operate in the single market.

“Are we going to reduce our monitoring to the minimum so that we can compete with other countries? Or shall we say: Dutch license applicants visit AFM because of our reliable image? We choose the latter,” said the Dutch Monetary Authority. people emphasized.

Laura van Geest emphasized that the Netherlands is following this path, although some of these companies may go the other way and try to enter the Dutch market through another European jurisdiction.

“The warnings of regulators have come true during the crypto winter,” said Van Geest, whose former Belgian finance minister, Johan Van Overtveldt, called on governments to ban cryptocurrencies across the board. He cited the current banking crisis related to the collapse of two crypto-friendly banks.

  • European lawmakers call for ban on cryptocurrencies, citing banking crisis
  • Binance is paving the way for EU MiCA regulation

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