The Dutch Authority for Financial Markets (AFM) stated that it will not rely on MiCA’s crypto regulation system.
The Netherlands is one of the 27 member states of the European Union (EU). People in the Netherlands can trade crypto assets but are prohibited to use cryptocurrencies as legal tender. The Central body of the EU is already working on a comprehensive crypto regulation framework with help of a dedicated agency “Markets In Crypto Assets (MiCA)” and that regulation system may come into effect within the next 2 years in all the EU members.
On 17 March 2023, The head of the Dutch Authority for Financial Markets (AFM) stated that the Netherlands will impose a strict European Union crypto regualtion.
AFM Chair Laura van Geest said that cryptocurrencies are not a good thing, as they are linked with scams, manipulations, and speculation like activities. Laura claimed that the EU’s MiCA regulation is not enough to prohibit all the risks associated with cryptocurrencies, instead, it will only partly address Crypto risks.
According to AFM Chair, MiCA’ Crypto regulation will only release a regime for crypto companies, including wallet service providers to prove services across EU.
According to Geest, MiCA’s regulation will not cover the regulation of crypto lending platforms. In short, Netherlands official believes that MiCA’s regulation is not much tight and also the history of the crypto sector doesn’t suggest showing any kind of crypto friendly regulation. So basically, AFM planing to bring tight rules against crypto companies, to keep major to minor illegal activities away from the EU crypto market.
Earlier this, in Jan 2023, The Bank of France’s governor Francois Villeroy de Galhau said that the country should work to bring a native crypto regulation framework, instead of waiting for MiCA’s crypto regulation framework.