Thursday 02 February 2023

Crypto currencies need international regulation: Dutch central bank

Mining crypto currencies. Photo: Depositphotos.com

International rules are needed to regulate the use of crypto currencies such as Bitcoin, Ethereum and Tether and it is of the ‘utmost importance’ this is done quickly, the Dutch central bank said on Tuesday.

Effective regulation will help ensure the added value offered by crypto technology can be leveraged while avoiding the risks associated with speculation,the bank said at the presentation of a new report on the policy response to crypto assets.

The central bank DNB decided to carry out the research because the rapid development of crypto assets is affecting the job of the regulatory authority.

The central bank’s role in regulating crypto assets is currently limited to combating money laundering, financing terrorism and violating sanctions. But, for example, there are no rules yet that protect crypto users.

‘While the crypto markets have become somewhat less hyped over the past six months due to global interest rate hikes, investment fraud and cybercrime, cryptos are here to stay, and international financial authorities simply cannot afford to look the other way,’ the bank said.

Read the report summary

In April, the Dutch central bank fined crypto trading platform Binance €3.32 million for operating in the Netherlands without formal registration.

Companies which trade in crypto currency have been required to register since May 2020 under legislation aimed at stopping money laundering and the financing of terrorism.

Some two million people in the Netherlands are thought to invest in crypto currencies.

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