Regulation
Dutch Finance Ministry rejects increased AFM funding for cryptocurrency monitoring: report
The Dutch Finance Ministry has rejected calls for additional funding to oversee the crypto sector under new European regulations.
The Dutch Finance Ministry has rejected several requests from the local financial regulator for additional funding to strengthen its oversight of the cryptocurrency sector. According to local reports reportsThe ministry also imposed limits on the contributions that the Financial Markets Authority can request from the financial sector itself.
The AFM, which regulates financial markets in the Netherlands, says increased funding is needed to manage new responsibilities arising from the European cryptocurrency legislation known as the MicaThe ministry, however, considers additional funding to be “politically unfeasible” and favours a minimal regulatory approach, a position that the AFM considers inadequate for effective supervision, as indicated in the reports.
The Ministry of Finance is reportedly less concerned about cryptocurrency fraud, highlighting a divergence in priorities between the two regulators. While the Dutch financial regulator has pledged to focus on areas that pose the greatest risks to consumers and investors, it has not detailed its specific future plans for overseeing the cryptocurrency market.
The Netherlands has been cautious in its approach to regulating cryptocurrencies. The country has several times fined major cryptocurrency exchanges for failing to comply with local registration requirements and anti-money laundering rules.