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Crypto is not suitable for crypto payments, says Dutch regulatory body

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Crypto is not suitable for crypto payments, says Dutch regulatory body 7

A Capital Markets and Transparency Supervision at the Dutch Authority for Financial Markets (AFM) official shared his opinion on the crypto spot and derivatives activities.

During the meeting of crypto derivatives trading at the Amsterdam Propriety Traders Managers on Tuesday of last week, Paul-Willem van Gerwen, the head of Capital Markets and Transparency Supervision at the Dutch Authority for Financial Markets (AFM), shared his opinion on the negative sides of crypto trade offerings. In particular, he targeted crypto derivatives offerings, as a threat to retail crypto investors.

Van Gerwen noted that no matter how much net interest in crypto increases, such types of trade are associated with very high-risk factors. In this way, Van emphasized AFM agency targets such crypto derivative services. 

AFM’s head raised a very big question and asked whether “the parties to the derivative transaction will be in a position to fulfill their promises.”

AFM officials acknowledged, that while AFM have no ban plan & also not imposed any ban provisions but surely in near future it can. 

Van added:

“Don’t get caught up in the excitement of this trading, don’t let yourself be tempted into retail trading.”

Van also claimed that crypto assets are not a better tool to use in the payment system. 

He said:

“Cryptos and derived tools aren’t yet suitable as a means of payment and/or investment.”

AFM head also pointed out a fact, where people can adopt Distributed ledger technology and they can turn to P2P system for their needs and further that will result in financial activities outside the centralized financial bodies.

“In principle, proprietary traders don’t get involved in the clearing. And yet the technological developments could lead to a situation in which a peer-2-peer model arises, with proprietary traders possibly starting to engage in clearing themselves.”

Few experts noted that regulatory bodies are not against the volatility in the prices of crypto assets, instead, they are against the decentralized nature, which can bypass the need for centralized governments. In short, government agencies are under fear to lose their power.

Read also: Cybersecurity firm CloudFlare will experiment on node of the Ethereum network

Crypto is not suitable for crypto payments, says Dutch regulatory body

 

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