Dutch Finance Minister calls for tighter crypto regulations. Specifically, some of the finance minister’s proposals suggest the need for the registration of some of the local exchange platforms and cryptocurrency services providers.
12 March, AtoZForex – The finance minister of Holland, Wopke Hoekstra, has written a letter to the parliament this past Thursday calling for the international approach to the crypto regulation. Mr. Hoekstra’s key focus was on new consumer protections.
Dutch Finance Minister Calls for Tighter Crypto Regulations
The public letter further mentions that Mr. Hoekstra wants to talk with credit card companies in regards to the potential introduction of stronger protections for people that buy cryptocurrencies with credit cards.
Some of the finance minister’s proposals suggest the need for the registration of some of the local exchange platforms and cryptocurrency services providers. The cryptocurrency market players will also need to follow the know-your-customer rules by the end of 2019, as per the suggestion of Mr. Hoekstra. He has also proposed new laws in a bid to protect initial coin offering (ICOs) participants. His letter states:
“It is being investigated whether investors in ICOs can become just as good protected as investors with a normal IPO or bond issue. The current framework is not sufficient for this.”
Dutch ICO Market Needs More regulation?
Such remarks appear noteworthy, considering that the regulators in the country have also warned about the issues in the crypto market. The key financial regulator of the Netherlands, the Netherlands Authority for Financial Markets (AFM), has published a statement earlier last November. The watchdog has called the ICO market a “dangerous cocktail.”
Hoekstra’s comments come in line with this statement and suggest prohibiting the advertisement of risky financial products to ordinary consumers. Mr. Hoekstra argued:
“The current supervisory framework and instruments are insufficiently tailored to cryptocurrency.”
In addition, he has promised to work with other nations in the European bloc to promote the cooperative research in order to explore the “cross-border nature of the market.” He has mentioned that within the Netherlands, more work is required in regards to the country’s laws to account for cryptocurrencies.
Think we missed something? Let us know in the comments section below.