Dutch Finance Minister calls for international approach to cryptocurrency regulation
In a letter to the Parliament, Dutch finance minister Wopke Hoekstra has called for such measures that would close the gaps between the European and international approach with regard to cryptocurrency regulation.
“Cryptocurrencies are a new phenomenon, on which current supervision and regulatory framework is still insufficiently equipped. Having regard to cross-border nature of the market, it requires closing these gaps [between the] European and international approach. This approach still needs to take shape, but discussions about that have started. The process will require time and coordination,” Hoekstra wrote (loosely translated).
He categorized cryptocurrency related services into four types – cryptocurrency trading, issuance of new cryptocurrency through Initial Coin Offerings (ICOs), derivative products of cryptocurrencies (such as bitcoin futures), and other risky financial products (such as binary options).
Hoekstra outlined the approach to control cryptocurrency risks. He said that the gaps in consumer and investor protection must be closed with appropriate measures, the integrity of the financial system must be ensured, the technology behind cryptocurrencies – distributed ledger technology (DLT) – must be preserved, and an international approach to cryptocurrency regulation.
He said that in consultation with credit card companies, he would work towards making consumers and investors aware of the risks of investing in cryptocurrencies. In addition, Hoekstra has also proposed new laws to protect ICO participants as well.
According to CoinDesk, some of the proposals put forward by Hoekstra would reportedly require local exchange platforms and cryptocurrency services to register with the government and comply with know-your-customer requirements by the end of 2019.