Finance Minister Says Netherlands Should Regulate Cryptocurrency Instead of Banning It

Finance Minister Says Netherlands Should Regulate Cryptocurrency Instead of Banning It


Dutch Finance Minister Wopke Hoekstra suggested that it would be more effective to monitor and regulate cryptocurrencies than a complete ban.

The Netherlands Should Regulate Cryptocurrency Instead of Banning It

Finance Minister Says The Netherlands Should Regulate Cryptocurrency Instead of Banning It

The country’s finance minister said a crypto ban is not the right solution for the Netherlands after a local official called for a complete ban on cryptocurrencies.

Dutch Minister of Finance Wopke Hoekstra stated that the Netherlands should regulate the crypto market rather than banning its citizens entirely from using cryptocurrencies, according to a Friday report by local news outlet NU. .nl.

The official still acknowledges certain risks associated with the cryptocurrency market, reportedly saying he understands the concerns of the Director of the Netherlands Bureau of Economic Analysis, Pieter Hasekamp. The minister stressed that it is important to ensure proper rules for virtual asset service providers to minimize risks around issues such as money laundering.

“My observation now is that monitoring is more effective than a complete ban in the Netherlands,” Hoekstra stated, noting that it is important to monitor the crypto market at a European level.

Hoekstra also mentioned that he issued a warning about crypto-related risks in 2017, emphasizing that crypto investors should realize that betting on crypto is “completely at their own expense and risk”.

“Right now that is going very well, but we have also seen major drops and peaks along the way,” Hoekstra said in November 2017, just weeks before Bitcoin (BTC) hit $20,000 for the first time in history in December.

Head of Dutch Central Planning Bureau: Netherlands must ban Bitcoin immediately

As previously reported, Hasekamp argued in a June 11 article that the Dutch government must implement an immediate outright ban on Bitcoin mining, trading and holding. He cited popular anti-crypto arguments, claiming that cryptocurrencies like Bitcoin cannot perform any of the three functions of money as a unit of account, means of payment, or store of storage. store value.

Some of the world’s biggest Bitcoin critics like award-winning economist Nouriel Roubini have acknowledged that Bitcoin can serve as a store of value, a major function of money in addition to a unit. account and a medium of exchange.

However, to Hasekamp: “The collapse of the crypto bubble is inevitable… The Netherlands must ban bitcoin now”

He also cited the fact that there are many countries in the world that are taking steps to limit the frenzy of cryptocurrency because of its negative effects such as crime, fraud, money laundering, tax evasion, environmental pollution, etc.

And so he thinks the Netherlands is lagging behind other countries in its efforts to regulate cryptocurrency trading platforms.

When it comes to the issue of rules for cryptocurrencies, it seems that the director is also not satisfied and insists that it needs to be banned immediately.

“Being cautious about regulation can also backfire: in this case akin to legalizing cryptocurrencies as a legal financial product,” he emphasized. Recent developments in cryptocurrencies suggest that it is time to act: the longer we wait, the greater the negative consequences of a bubble burst.”

“The final step is to completely ban the production, trading and even ownership of cryptocurrencies,” he concluded.

The volatility and other effects of Bitcoin and cryptocurrencies on the socio-economic are creating mixed views in different countries, even among regulators in the same country.

Either way, the history of Bitcoin has gone through a lot of such tumultuous periods. Any new thing is hard to avoid such doubts and controversies. Although electronic money has many advantages, it cannot be denied that it also has limitations. And sometimes its advantages become weaknesses for some groups of people to have the opportunity to take advantage of illegal acts like Hasekamp pointed out.

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