Netherlands Set to Regulate Crypto Exchanges, Says Official
The Netherlands hoping to become the latest country to officially regulate crypto exchanges. Last week, the head of the Dutch central bank Klaas Knot said cryptocurrencies are not posing a risk for financial stability but they need to regulate the entire business in order to make it more effective and attractive.
Dutch Central Bank has stated money laundering, investor protection and volatility are a concern and they have to deal with these issues. Knot said they prefer pan-EU approach towards cryptocurrencies in order to set a standard as they are ready to play a part to it.
Of course, one major issue is how to regulate crypto exchanges. Knot said digital currencies are not fit to the existing laws and special rules have to be designed for them. He added:
“Given the international character of cryptos, a global or European approach is needed. But that will take time. Meanwhile, we at the Dutch central bank are assessing the possibility, together with the Authority for the Financial Markets, of a proportional supervisory framework for cryptos.”