News item | 7/14/2023 | 15:13
Buyers of cryptos may no longer be consciously advised incorrectly. Misleading advertising is also prohibited. This is now often done through advertisements from so-called influencers. It should soon be clear who the sender of the advertisement is. This is stated in an internet consultation for the national implementation law of the European Markets in Crypto-assets Regulation (MiCA) that starts today for the duration of six weeks. After the summer, the responses will be processed and the bill will be presented to the Council of State for advice. This is followed by the parliamentary debate.
New crypto law in internet consultation
On June 30 this year, the European Commission introduced a new package of laws to regulate the crypto market, entitled MiCA (Markets in Crypto Assets Regulation). National legislation is required for the implementation of this European regulation, which is currently being consulted.
Providers of cryptos will soon not be allowed to sell products that are too dangerous or complicated, or to deliberately advise buyers wrongly. If a platform is hacked and cryptos are stolen, providers must compensate their customers. Crypto service providers are also not allowed to use their customers’ funds for proprietary trading.
European and national crypto legislation provides more regulation, but does not cover all risks. Crypto trading remains an unstable and risky market, even after the introduction of MiCA. The Ministry of Finance urges buyers to be well informed about the purchase of cryptos and to be aware of the risks that trading cryptos entails. More information about the risks of cryptos and how you, as a buyer, can handle cryptos wisely can be found at slimincrypto.nl.
More protection for consumers
The European crypto legislation MiCA must offer consumers more protection. At the moment, the crypto world is not regulated. If you get into cryptos now and you lose your money, or you become a victim of fraud and scams, you have nowhere to go and you lose your money. In the new European MiCA regulation there will be more supervision and crypto companies will have to comply with more conditions. In the Netherlands, this supervision will be carried out by De Nederlandsche Bank and the Netherlands Authority for the Financial Markets.
Supervision by AFM and DNB
Cryptos and crypto companies will soon fall under the supervision of the Netherlands Authority for the Financial Markets (AFM). Supervisors from the AFM will from now on be watching to see whether crypto trading is done according to the rules and whether buyers of cryptos are being treated properly by crypto exchanges or providers of wallets or that there may be fraud or deception.
De Nederlandsche Bank (DNB) will supervise parties that issue stablecoins. DNB checks whether stablecoins really ‘stable‘, ie stable, and actually backed by dollars or euros.