The Dutch finance ministry has denied multiple requests for additional funding from the Authority for the Financial Markets (AFM) to enhance crypto sector oversight. This decision comes amid new European regulations under the MiCa legislation.
The AFM argues that increased funding is essential to manage new responsibilities, but the ministry finds this “politically unachievable” and prefers a minimal regulatory approach. This stance has raised concerns about inadequate supervision.
Interestingly, the finance ministry appears less worried about crypto-related fraud, highlighting a divergence in priorities with the AFM. The AFM has committed to focusing on the highest risks to consumers and investors but hasn’t detailed specific future plans for crypto oversight.
The Netherlands has a history of caution in crypto regulation, previously fining major exchanges for non-compliance with local laws. This decision underscores the ongoing debate about balancing regulatory thoroughness with political feasibility.
