Netherlands signals tough stance on MiCA enforcement

The Netherlands Authority for the Financial Markets will take a tough stance in enforcing the EU’s new rules on cryptocurrencies. said Laura van Geest, the head of the agency.

According to her, digital assets are associated with fraud, manipulation, and speculation. The provisions of the comprehensive regulation of crypto-asset markets (MiCA) will only partially address these risks.

“[…] we do not see reasons to show leniency in enforcement. […] Regulator warnings have proven true in the crypto winter. Prices fell sharply, several exchanges went bankrupt. But will this permanently undermine the appeal of cryptocurrencies? […] MiCA solves some problems, but not all,” wrote van Geest.

The head of the Authority stressed that the authorities intend to keep a tight vigil over the industry, even if that means businesses relocate to other jurisdictions.

In October 2022, the participants of the EU Council signed off on the draft text of the bill on regulating digital assets without further discussion. MiCA includes rules that apply to issuers of uncollateralised crypto assets, stablecoins, trading and custodial platforms.

Crypto-asset service providers will be required to adhere to strict consumer-protection requirements, and trading platforms will be required to provide a white paper.

Earlier, representatives of Germany, Italy and the Netherlands insisted on preserving the stance regarding a daily cap of €200 million on stablecoin transactions collateralised in a currency other than the euro.

Earlier in 2023, the European Parliament moved the final vote on the document to April.