Dutch regulator: MiCA bill is too soft to regulate cryptocurrencies

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​​The Dutch Financial Markets Authority (AFM) considers the bill on regulation of crypto assets in the European Union (MiCA) too “soft” for this sector.

AFM Chairman Laura van GeestGeest) stated that, despite the loyal European rules for regulating cryptocurrencies, the Dutch regulator is not going to soften its attitude towards digital assets. Geest noted that they are difficult to understand and are often used for fraud and market manipulation. However, it is difficult to imagine a complete ban on cryptocurrencies, Geest noted.

According to AFM estimates, the number of ownersThere are less than 2 million crypto-active people in the Netherlands, and most of them invest less than €1,000 in cryptocurrencies. Guest added that the traditional financial sector in the Netherlands is not strongly connected to the cryptocurrency space. However, the MiCA Bill regulates digital assets less strictly than the standards for existing financial products.

“Should we relax oversight of the industry?just to be able to compete with other countries? Individuals who apply to AFM for a license come to us because they trust our strong image. And we don’t want to ruin our reputation, even if cryptocurrency companies move to other European jurisdictions,” insists the AFM chairman.

In January, the Dutch Central Bank finedcryptocurrency exchange Coinbase for $3.6 million for violating registration rules, and at the end of last year the central bank called on local traders to refrain from trading on the KuCoin platform, which does not have a license to operate in the Netherlands.