Mining crypto currencies. Photo: Depositphotos.com
International rules are needed to regulate the use of crypto currencies such as Bitcoin, Ethereum and Tether and it is of the ‘utmost importance’ this is done quickly, the Dutch central bank said on Tuesday.
Effective regulation will help ensure the added value offered by crypto technology can be leveraged while avoiding the risks associated with speculation,the bank said at the presentation of a new report on the policy response to crypto assets.
The central bank DNB decided to carry out the research because the rapid development of crypto assets is affecting the job of the regulatory authority.
The central bank’s role in regulating crypto assets is currently limited to combating money laundering, financing terrorism and violating sanctions. But, for example, there are no rules yet that protect crypto users.
‘While the crypto markets have become somewhat less hyped over the past six months due to global interest rate hikes, investment fraud and cybercrime, cryptos are here to stay, and international financial authorities simply cannot afford to look the other way,’ the bank said.
Read the report summary
In April, the Dutch central bank fined crypto trading platform Binance €3.32 million for operating in the Netherlands without formal registration.
Companies which trade in crypto currency have been required to register since May 2020 under legislation aimed at stopping money laundering and the financing of terrorism.
Some two million people in the Netherlands are thought to invest in crypto currencies.
Thank you for donating to DutchNews.nl
The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.
DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.
If you have not yet made a donation, but would like to,
you can do so via Ideal, credit card or Paypal.
© 2022 DutchNews | Cookie settings | website by Vindustries
Many thanks to everyone who has donated to DutchNews.nl in recent days!
We could not provide this service without you. If you have not yet made a contribution, you can do so here.
The DutchNews.nl team