Dutch finance minister opposes an outright ban on cryptocurrency
- Dutch Finance minister has faulted Pieter Hasekamp’s opinion to ban crypto in the country.
- Wopke Hoekstra said a crypto regulation will be more effective than an outright cryptocurrency ban.
- He advised that exchange platforms should follow the KYC rules to reduce money-laundering risks.
Netherland’s Minister of Finance Wopke Hoekstra has expressed his opinion about the proposed ban of cryptocurrency in the country. According to him, a crypto regulation will be ideal for everyone rather than an outright ban.
Outright ban earlier suggested by Pieter Hasekamp
The minister was responding to the suggestion made by the economic adviser, Pieter Hasekamp, noting that the country should ban crypto any activity about cryptocurrencies.
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While the minister acknowledged Husekamp’s concerns about cryptocurrencies, he stated that a complete ban would not provide a better solution than regulation of crypto-related activities. He pointed out,
My observation now is that regulation is more effective than a total ban in the Netherlands.
Hoekstra says the focus should be the provision of laws that will offer more protection to consumers and investors. As a step towards that direction, he said he wants to discuss with credit card companies the need to institute stronger protection for those who buy crypto assets using credit cards.
Hoekstra also stated that he has initially stated the dangers in crypto trading back in 2017 when he stressed that crypto investors should know that their bets on cryptocurrencies are “entirely at their own expense and risk.”
Exchanges should adhere to KYC rules
Hasekamp argued earlier last week that the Dutch government should carry out an immediate ban on cryptocurrencies. He cited regular money-laundering activities and high volatility risks as enough reasons to take the decision.
Based on the proposals he has recommended, cryptocurrency services and exchange platforms should register with authorities and follow the Know-your-customer (KYC) requirements to protect users and consumers.
In November last year, the Netherlands Authority for Financial Markets (AFM), which is the US version of the SEC, stated that the ICO market is a “dangerous cocktail.” In response to the statement, Hoekstra proposed bans that would prevent companies from advertising highly risky financial products.