The Netherlands will take a tricky stance on imposing new European Union (EU) cryptocurrency rules, even when some suppliers transfer elsewhere, in keeping with Laura van Geest, chairman of the Netherlands Authority for the Monetary Markets (AFM).

Cryptocurrencies will not be excellent news as a result of they’re tough to pin down and are liable to fraud and manipulation. Their worth is essentially primarily based on hype and normally haven’t any intrinsic worth. Within the Netherlands, the connection between the cryptocurrency world and the standard monetary sector continues to be restricted.

In line with a survey by AFM, although 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 stated 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 stated that the EU’s Market in Cryptoassets (MiCA) regulation can solely partially deal with its dangers. Whereas the AFM will encourage innovation, it can take a strong regulatory strategy to make sure the cryptocurrency business adheres to excessive requirements of behaviour.

The AFM due to this fact urges corporations to be clear about their actions and to work with regulators to implement new EU guidelines.

The Netherlands has lengthy been a frontrunner in monetary regulation and innovation, and the AFM’s stance is in step 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.