The Dutch financial market supervisor is yet another authoritative institution to issue an official warning against trading and investing in crypto-based assets. The nation’s Autoriteit Financiële Markten (AFM) released a new warning this Wednesday warning retail investors of the risks associated with cryptocurrencies.
The regulator commented that it is against investing money into short or long-term crypto investment opportunities. This isn’t the first warning issued by it. Ever since 2017, the AFM has been vigilant against everything crypto-related.
The regulator is as watchful as ever, claiming that cryptocurrencies have inborn risks, such as the ability to collapse the value of themselves, the sheer complexity of the crypto assets, and the lack of a cohesive regulatory framework. The agency also mentioned that, although it cannot oversee the crypto market as other more regulated ones, it still is keeping an eye on the current trends that define the digital coins industry.
The Dutch regulator, however, pointed out that major changes are expected to happen once the European Union’s Markets in Crypto-Assets Regulation (MiCAR) is set into motion sometime in 2024 and with it an enforced regulatory framework on most major crypto-related services and businesses.
For now, Dutch investors are reported to mainly invest lower sums of money into cryptocurrencies. Two-thirds of its 1.2 million crypto buyers have put less than €2,500, while more than half of these are putting less than $500.
Source
They do have a point about the lack of regulation especially, I think. That leads to a lot of shady practices in the industry.
The regulator commented that it is against investing money into short or long-term crypto investment opportunities. This isn’t the first warning issued by it. Ever since 2017, the AFM has been vigilant against everything crypto-related.
The regulator is as watchful as ever, claiming that cryptocurrencies have inborn risks, such as the ability to collapse the value of themselves, the sheer complexity of the crypto assets, and the lack of a cohesive regulatory framework. The agency also mentioned that, although it cannot oversee the crypto market as other more regulated ones, it still is keeping an eye on the current trends that define the digital coins industry.
The Dutch regulator, however, pointed out that major changes are expected to happen once the European Union’s Markets in Crypto-Assets Regulation (MiCAR) is set into motion sometime in 2024 and with it an enforced regulatory framework on most major crypto-related services and businesses.
For now, Dutch investors are reported to mainly invest lower sums of money into cryptocurrencies. Two-thirds of its 1.2 million crypto buyers have put less than €2,500, while more than half of these are putting less than $500.
Source
They do have a point about the lack of regulation especially, I think. That leads to a lot of shady practices in the industry.
