In a letter to parliament, the Dutch Finance Minister, Wopke Hoekstra, urged legislators to look for ways to involve other countries in the regulation of cryptocurrencies and ICOs. The minister focuses on new consumer protection. As a start, he seeks the authority to speak with credit card companies about the possibility of coming up with stronger protection for people buying cryptocurrencies using credit cards.
Know Your Customer (KYC) Fronted
In the proposal, the Minister wants all the local exchange platforms and cryptocurrency services to register with the Dutch authorities and adopt KYC guidelines before the end of 2019. The letter says that this will not only help to protect the public against theft from unscrupulous exchanges, but also fight money laundering in the country. In the letter, Hoekstra proposes the enactment of new laws that will help protect ICO participants as well.
It is being investigated whether investors in ICOs can become just as good protected as investors with a normal IPO or bond issue. The current framework is not sufficient for this,
-Explains part of the letter.
These proposals have attracted widespread appreciation given that the country has previously flagged up various issues with ICOs.
ICO Market as a Dangerous Cocktail
Coindesk reports that last November, The Netherlands Authority for Financial Markets (AFM), which is a replica of the US Securities and Exchange Commission, gave a statement referring to the ICO market as a ‘dangerous cocktail’. Agreeing with this statement, the Minister now proposes a ban that will disallow ads on risky financial products to the public.
Additionally, he has promised to collaborate with other European Union countries in coming up with uniformed cross-border regulations. The minister said,
We will promote cooperative research that will explore cross-border nature of the market,
The letter also indicated that Netherlands needs to do more in updating the country’s laws and regulations as the current ones do not cover cryptocurrencies or the entire speculative aspects around the market. “The current supervisory framework and instruments are insufficiently tailored to cryptocurrency,” he wrote in the letter. The letter calls on legislators to support him in coming up with enhanced laws and regulations to govern the cryptocurrency industry and market.
This move by the minister is seen as the new norm among different European countries, which have mulled over different proposals to regulate cryptocurrencies and ICOs.
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