Watchdog AFM and Minister of Finance plea for a ban on bitcoin in The Netherlands

Financial institution AFM and Dutch minister of Finance Hoekstra both research the possibilities for a ban on bitcoin in The Netherlands. Both state the risks of bitcoin is very high for participants regarding the currency rates.

AFM: Risky investments should be banned or regulated

Autoriteit Financiele Markten (AFM) sees an increase in ‘risky foreign investments regarding cryptocurrency’. Because of the current low savings interest, people are exploring other options to invest their money. Those investments attract many people who are interested in the higher returns on investment. According to Merel van Vroonhoven, AFM boardmember, stating to Volkskrant, people underestimate the risks of these investments. She mentions cryptocoins like Bitcoin as one of those risk investments in which already 135 thousand people in The Netherlands invest, double the amount of last year. AFM predicts this year another 150 thousand Dutch people are likely to invest, based on their research in October 2017. The AFM can’t stop the cryptocoins itself, because they are not investment related products. An ICO instead, an initial coin offering, is what they try to at least regulate.

Dutch Tweede Kamer in discussion about crypto

Minister Hoekstra of Finances is researching the possibilities wether a ban on bitcoin and crypto is desirable and possible. The Tweede Kamer pushes the minister to research the regulation or complete ban of cryptocurrency and new investment methods. He states an advice will be made in a few weeks.

Startups and ICO’s

As part of the so-called crypto-bubble, startups nowadays use ICO’s – initial coin offerings – to get early stage investments. In The Netherlands/Europe there currently is no clear policy regarding these investments, where the US, Singapore and China already made local regulations. France also calls for limitations or a ban on the cryptocoins.

Photocredits: Pexels/Pixabay

The post Watchdog AFM and Minister of Finance plea for a ban on bitcoin in The Netherlands appeared first on StartupJuncture.