Tuesday 07 April 2020

Dutch finance minister plans to tackle cryptocurrency risks

Bitcoin mining. Photo: Depositphotos.com

The Dutch government wants to take a European and international approach to combat the risks associated with bitcoin and other cryptocurrencies, finance minister Wopke Hoekstra has told parliament in a briefing.

In addition, Hoekstra said he will look into what options are available to take action now to combat the risks. Recent research showed that half a million Dutch households now own them.

‘Investing in cryptocurrencies is not without risk,’ Hoekstra said. ‘In contrast to savings, money put into cryptocurrencies does not fall under a deposit guarantee system and there is generally no central issuer to claim from in the event of abuse.’

Among the measures Hoekstra is considering are a ban on targeting ordinary consumers with advertising for risky financial products. He also wants to talk to credit card companies about warning consumers of the financial risks of buying cryptocurrencies on credit.

Extra attention will also be paid to improving transparency around trading in cryptocurrencies, using newly introduced anti-money laundering legislation.

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