- Gaps in customer and buyer protection has to be true should be shut, but measures have to be proportionate.
- The ethics of the monetary system has to be guaranteed.
- The innovative technique behind cryptocurrency has to be preserved, including cryptography and distributed ledger technology (DLT).
- The cross-border character of cryptocurrencies necessitates one particular approach at the global level. National rules can simply be circumvented or hard to maintain.
Like most other policy makers, Hoekstra sees the importance of promoting and developing the technology behind cryptocurrency, including cryptography and dispersed ledger technology. Nonetheless, in addition to the concern over hacking and fraud, the minister voiced concern over the unregulated nature of the sector and the way to inform consumers of the possible risks.
Hoekstra emphasized that there’s been little time to understand and react to the changing landscape and that the present oversight and regulatory framework has been ill equipped to take care of this. Due to the cross-border nature of the markets and technology, closing those gaps requires a unified approach across governments and borders. The Union will soon be operating in an European context, however the whole procedure will take time and coordination between both agencies and governments.
In additional comments, Hoekstra said, “I expect the standard procedure for the realization of legislation and regulations which these new rules could enter into force at the end of 2019. This directive, which occurred in June 2017, lays out the most recent parameters and criteria adopted by the EU to avoid money-laundering and terrorist financing.
Released at Mon, 12 Mar 2018 20:07:03 +0000
He sees the shift as helping prevent the use of cryptocurrency for the purposes of tax evasion too. While this letter isn’t policy, it does reflect the way The Netherlands, Europe and much of the world seem to be led in.
Hoekstra explained the following as starting points from his evaluation of possible policies and policies to control the risks related to cryptocurrencies:
In an six-page correspondence to the senate and property, Finance Minister Wopke Hoekstra has outlined his concerns over the rapid and dramatic growth in cryptocurrencies.
The minister further said that given the decentralized and cross-border character of cryptocurrencies, a ban isn’t feasible, so it was important to attract cryptocurrencies beneath the right regulatory framework and also the Dutch join together with the French and German finance ministers to discuss cryptocurrency from the G20 circumstance. The Netherlands would like to play a major role at the European and global approach to cryptocurrency.