Dutch finance ministry rejects AFM’s funding boost for crypto oversight: report

The Dutch Ministry of Finance has rejected a request for additional funds to monitor the crypto sector amid new regulations in Europe.

The Dutch finance ministry has rejected multiple requests from the local financial regulator for additional funding to increase its oversight of the crypto sector. According to local news reports, the ministry has also imposed limits on the contributions the Financial Markets Authority can request from the financial sector.

The AFM, which regulates financial markets in the Netherlands, argues that increased funding is needed to manage new responsibilities arising from European cryptocurrency legislation known as MiCa. However, the ministry sees the additional funding as “politically unachievable” and supports a minimum regulatory approach, a stance that the AFM believes is insufficient for effective oversight, as reports show.

The finance ministry is reportedly less concerned about crypto-related scams, highlighting the difference in priorities between the two regulators. The Dutch financial regulator has not detailed specific future plans for overseeing the crypto market, though it has vowed to focus on areas that pose the greatest risks to consumers and investors.

The Netherlands has been cautious in its approach to crypto regulation, with the country imposing several fines on major crypto exchanges for failing to comply with local registration requirements and anti-money laundering rules.