According to the Chairman of the Dutch Financial Markets Authority (AFM), Laura van Geest, the European Union Crypto Asset Regulation (MiCA) bill is too lenient for the cryptocurrency industry.
Despite the regulations in place for digital assets, the Dutch regulator intends to maintain a strict stance towards cryptocurrencies due to their association with fraud and market manipulation.
While a complete ban on cryptocurrencies is unlikely, the AFM estimates that the number of crypto asset holders in the Netherlands is relatively low, with most investing less than 1,000 euros.
Furthermore, the traditional financial sector in the Netherlands has limited connections with the cryptocurrency space.
However, the MiCA bill is not as rigorous in regulating digital assets as it is for other financial products, leading some to question whether the AFM should relax its oversight to remain competitive with other countries.
Nevertheless, the AFM remains committed to maintaining its reputation for solid regulation, even if it means losing cryptocurrency companies to other European jurisdictions.
In recent months, the Dutch Central Bank has fined Coinbase for violating registration rules, and local traders have been advised to avoid trading on unlicensed platforms like KuCoin.