Dutch Finance Ministry Rejects AFM’s Funding Boost for Crypto Oversight
In one word, no! The local financial regulator has been peeved after repeated demands on the Dutch finance ministry for the extra funding needed to ensure their supervision of the crypto sector are fulfilled have been turned down. The situation is triggered by the fact of the new European regulations under the Markets in Crypto-Assets (MiCa) which are going to bring about the imposition of new duties for the Authority for The Financial Markets (AFM) on the spot.
AFM’s Funding Request Denied
Per a report in the local press, the government department also has restrictions on the donations that the AFM can make to the sector. The AFM, who are in charge of the regulation part on the financial markets in the Netherlands, supports the argument that to effectively work with the new rules of MiCa, they need more resources.
Ministry’s Stance on Funding
Interestingly enough, the state admin does not agree with this point of view saying that this matter will not even politically possible therefore no need to discuss it. A report indicates that the AFM sees this position as inadequate. This point of view of the ministry is in line with the general governmental policy that does not view additional funding for crypto oversight as a priority.
Diverging Priorities
There is definitely a split between the finance ministry and the AFM in terms of what is the priority. From the details that are picked from the finance ministry, it appears that it has become less punctual at the issues of crypto related fraud, which is different from the AFM’s call to acquire more resources so as to manage the potential risks in the crypto market. At the same time, the AFM, even though it hasn’t given the details of its future plans for supervising the crypto market, has promised that it would continue focusing on areas that are the most dangerous to the consumer and investor.
Cautious Approach to Crypto Regulation
The Netherlands’ approach to cryptocurrency regulation is traditionally cautious. The country has slapped penalties against several major cryptocurrency exchanges for non-compliance with the local registration and anti-money laundering rules. This background is a strong reminder of the pressing issues and the constant regulatory probing in the crypto sector in the Netherlands.
Conclusion
The Ministry of Finance in the Netherlands decides the lack of extra funds for the AFM is a huge supervision problem as they are transitioning to the new European cryptocurrency rules. Whether the AFM will perform such new tasks by having less resources required no more discussion on the future of the crypto oversight in the Netherlands.
