Regulation
Finance Ministry says no to additional funding for cryptocurrency regulation
July 29, 2024 Cryptocurrency mining. Photo: Depositphotos.com
The Finance Ministry has rejected several requests from the Dutch financial sector watchdog AFM for additional funding to monitor the cryptocurrency sector. Financial Journal reported on Monday.
In addition, the ministry has imposed limits on the contributions the AFM can request from the sector itself, the newspaper said, citing government documents obtained under freedom of information legislation.
The AFM believes it needs additional funding to meet new responsibilities arising from European legislation on the cryptocurrency sector. But the ministry believes that a government contribution would be “politically unfeasible” and instead wants a minimum level of regulation, which the AFM says is insufficient to enable it to do its job effectively.
The documents, which total nearly 300 pages, show that the Finance Ministry is not as concerned about cryptocurrency fraud as the AFM. “Given the risks associated with the cryptocurrency sector… we advise opting for the minimum scenario,” the newspaper said, citing one document.
Experts and the Trimbos addiction center are surprised by the ministry’s reluctance, telling the newspaper that it will result in “suboptimal supervision.”
THE EU legislation, known as MiCawill come into force at the end of this year.
The AFM told the newspaper it would focus “on issues where the greatest harm to consumers, investors and market participants exists or could occur,” and declined to comment on the finance ministry’s position.
A ministry spokesman said the required capacity had been determined and allocated in close consultation with regulators and a review would take place next year.
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