The Netherlands Plans to Set Cryptocurrency to Protect Consumers

Minister of Finance (Minister of Finance) Netherlands, Wopke Hoekstra has sent a letter to the parliament which contains a call regarding the call for an international approach to regulate cryptocurrency.

This is done because it aims to protect consumers. As a first step, Hoekstra wants to meet with credit card companies to provide greater protection for buyers of virtual currency by using credit cards.

The letter stated that the virtual currency exchange platform must register its company to the government and must meet the "know the consumer" or know your customer (KYC) requirements. All cyrptocurrency platforms in the Netherlands must report to the government before the end of 2019.

In addition, Hoekstra also proposed new rules for Initial Coin Offering (ICO) or commonly known as initial coin offerings.

Hoekstra said it was investigating whether ICO investors could be protected like an IPO investor. "The existing frame of work is still not appropriate to overcome it," he continued.

The Dutch Financial Market Authority (AFM) stated that ICO is something that is dangerous. Therefore, Hoekstra also proposed a ban on advertising financial products that are at risk for consumers.

Later, the Dutch Finance Minister also pledged to cooperate with EU member states and promote cooperative research to test the virtual currency market.

Meanwhile, the Dutch still have to reform the rules related to virtual currency and speculative activities.

"The current frame of work and surveillance instruments are not suitable for the virtual currency," Hoestra said.

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