The Dutch finance ministry has declined requests for extra funding to monitor the crypto sector in light of new European regulations.
Multiple requests from the local financial regulator to boost oversight in the crypto sector have been turned down by the Dutch finance ministry. Recent reports have revealed that the ministry has set limits on the financial sector’s contributions to the Authority for the Financial Markets.
The AFM, responsible for regulating financial markets in the Netherlands, argues that increased funding is necessary to handle new responsibilities arising from the European cryptocurrency legislation, MiCa. However, the ministry views additional funding as “politically unattainable” and prefers a minimal regulatory approach, a stance that the AFM deems insufficient for effective supervision.
There appears to be a discrepancy in priorities between the two regulatory bodies, with the finance ministry showing less concern about crypto-related fraud. While the Dutch financial regulator has promised to prioritize areas posing the highest risks to consumers and investors, it has yet to outline specific plans for monitoring the crypto market in the future.
Taking a cautious approach to cryptocurrency regulation, the Netherlands has penalized several major crypto exchanges multiple times for failing to adhere to local registration requirements and anti-money laundering rules.
In related news, Crypto.com has expressed its disappointment over a $3 million fine imposed by the Dutch central bank and plans to appeal the decision.