Report Increased Funding for Oversight of Cryptocurrency

The Dutch finance ministry has declined requests for extra funding to oversee the crypto sector in light of new European regulations.
Rejecting multiple pleas for added funding from the local financial regulator to bolster supervision of the crypto sector, the Dutch finance ministry has also imposed restrictions on the contributions that the Authority for the Financial Markets can request from the financial sector. 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. The ministry, however, views additional funding as “politically unattainable” and prefers a minimal regulatory approach, a viewpoint that the AFM deems insufficient for effective oversight, as per reports.
Divergence in priorities between the two regulatory bodies is evident, with the finance ministry showing less concern about crypto-related fraud. While the Dutch financial regulator has committed to concentrating on areas posing the highest risks to consumers and investors, it has not outlined specific future plans for monitoring the crypto market. The Netherlands has taken a cautious stance on cryptocurrency regulation, having previously fined numerous large crypto exchanges for failing to adhere to local registration requirements and anti-money laundering rules.
For more information, Crypto.com expresses disappointment over a $3 million fine imposed by the Dutch central bank and intends to appeal.