News item | 17-11-2023 | 2:15 PM
There will be requirements for crypto companies to protect consumers. For example, they are not allowed to make misleading advertisements and they must warn buyers of crypto about the risks. Crypto companies will also have to deal with additional rules for anti-money laundering and terrorist financing. The Council of Ministers agreed to this on the proposal of Minister Kaag of Finance.
Currently, there are only rules for cryptos to combat money laundering and terrorist financing and there is no consumer protection. This is changing with the introduction of the Markets in Crypto-Assets Regulation (MiCA).
Consumer protection
There will be requirements for crypto companies to protect customers. For example, they may not make misleading advertisements or deliberately misinform buyers. Crypto companies must also warn about the risks associated with those transactions. From now on, buyers will have insight into the white paper (a kind of prospectus) of crypto coins and products. Crypto companies and stablecoin issuers must also have a license to be active on the European market.
Anti-money laundering
Crypto companies will face additional rules for anti-money laundering and terrorist financing. The Transfer of Funds Regulation (TFR) implementation law obliges crypto companies to collect, transmit and store information from the seller and buyer for crypto transactions for competent authorities, so that crypto transactions become more traceable.
Supervision by AFM and DNB
Cryptos and crypto companies will soon also fall under the supervision of the Netherlands Authority for the Financial Markets (AFM) and not only by De Nederlandsche Bank (DNB). From now on, the AFM will monitor whether crypto trading takes place according to the rules and whether crypto companies protect consumers enough. DNB will monitor the issuance of stablecoins and check whether they are actually backed.
Introduced gradually
MiCA entered into force on June 29, 2023 and will be introduced in stages. Most of it will come into effect from December 30, 2024. TRF will also come into effect on December 30. The measures surrounding stablecoins will apply as of June 30, 2024.
The Council of Ministers has agreed to send the MiCA and TRF bills to the Council of State for advice. This will be followed by parliamentary consideration.