AFM along with De Nederlandsche Bank aka DNB believes to incorporate a licensing system regarding crypto exchanges and crypto-pocket purse providers. This might combat terrorist financing and money laundering more effectively.
Carrying this intention, they suspect adjustments within the European rules regarding corporate finance which have to offer this market small-scale enterprise financing with the use of blockchain technology. Similarly, the duo thinks that the cryptos’ international nature needs international coordination. Which will help those efficiently secure Dutch users against the greatest risks.
Both AFM and DNB mention that this is a joint recommendation by the Minister of Finance sending right to the House of Representatives. There are various arguments regarding national licensing system within the AML and Terrorist Financing Act. According to the European context, the fourth AML directive has been amended to address this particular risk.
In their view a permit system makes it possible to test parties at the gate and, if necessary, exclude them from the market in advance.
Considering a longer time period & peeking at the blockchain technology apps. Both AFM and DNB counts to provide opportunities to finance low scale business operations. They desire to offer cryptos the representative clear and enforceable rights like share or bond.
Therefore, the authorities AFM and DNB prefer the European rules. This rule helps to for corporate financing adoption to offer crypto space a comparable share or bond.
Moreover, this concludes proportional laws regarding trade and adjusting the regulations of custody and settlement. This might likely obstruct the blockchain technology advantages unnecessarily.
Talking at the national level, regulators AFM and DNB are looking to adopt the securities concept. A long with a broader definition basically to the existing European regulations. However, this provides the AFM a room to drive in some digital assets under its supervision. Moreover, they mention:
Due to the sharp decline in popularity of cryptos, the necessity has been taken to impose national rules in anticipation of this.
Lastly, the AFM and DNB are regularly warning cryptocurrencies, ICO’s, because of their deception risks, cybercrime, fraud, and manipulation.