Dutch Government Is Working on a Proposal to Regulate Trading in Cryptocurrencies

With regulatory bodies across the globe seen taking necessary measures, the government of Netherlands too, seems to be working on regulating crypto trading activities within the country’s boundaries.

The country has said that although the government has not given any thought of putting ban on crypto trading, it is certainly working on ways to prevent the abusive use of cryptocurrencies. Moreover, the government has made it clear that it also aims to protect the investor’s interest against financial risks.

Dutch Minister Hoekstra of Finance, in a letter to the House of Representatives, writes that Netherlands wants to play a pioneering role in Europe to streamline measure for the cryptocurrency use and also work with other countries like the G20.

The government also said that it is looking forward to introducing regulation on other crypto financial products like the Bitcoin futures, along with a ban on advertisements associated with the products. The government said that the Netherlands Authority for the Financial Markets (AFM) will monitor this.

Hoekstra has also talked with credit companies to inform and warn its customers about the financial risks associated with buying cryptocurrencies with credit cards. We have recently seen that how most of the credit card companies and banks in the United States have banned the users from making crypto purchases.

While pressing on the issue of tax evasion, all the Dutch citizens who have made any profits through cryptocurrency investments have been asked to report it to the tax authorities in due time. Moreover, the government has also made it clear that it is not at all involved in any sort of crypto purchases or its derivate products. A few government institutions have been allowed to do so but under strict rules.

The digital currency exchanges have been strictly asked to implement all the European anti-money laundering rules just like other financial institutions. They have also been given the right to investigate suspicious clients whom they think is involved in illicit activities like terror funding.

Regulatory bodies from around the globe have recently got much active especially after last year’s crypto bull run. One of the commonly sighted reasons by the regulatory agencies of different countries is the increased amount of cases of tax evasion and money laundering getting reported.

It all started with South Korea cracking the whip on local exchanges, earlier this year. In order to avoid the use of digital currencies for illicit activities, the South Korean regulatory bodies have put some strict measures in place which doesn’t allow investors trade through unknown accounts.

After the recent hack of the Coincheck exchange in Japan, the country’s financial watchdog - the Financial Services Agency (FSA) has also been seen strict action and measures in order to protect investors’ interest in the long run.