The Netherlands should regulate crypto instead of banning it: Finance Minister

Banning cryptocurrency is not the right decision for the Netherlands, the country’s finance minister reportedly said a local official called for a total ban on crypto.

The Netherlands should regulate crypto instead of banning it: Finance Minister

Wopke Hoekstra, Dutch minister of finance, stated The Netherlands should regulate cryptocurrency instead of prohibiting it. The official still admitted to certain risks associated with the crypto market, reportedly saying that he understood the concerns raised by director Dutch Bureau for Economic Analysis, Pieter Hasekamp.

The minister stressed that it’s crucial to ensure proper rules for virtual asset service providers in order to mitigate the risks around issues such as money laundering.

Hoekstra noted that it’s important to oversee the crypto market at the European level, stating “My observation is now that supervision is more effective than a total ban in the Netherlands.” 

Hoekstra also emphasized that he already issued a warning regarding cryptocurrency-related risks back in 2017, stressing that crypto investors should realize that their bets on crypto are “entirely at their own expense and risk.”

“That's going very well now, but we've also seen big dips and peaks along the way,” Hoekstra said in November 2017, just a few weeks before Bitcoin hit $20,000 for the first time in history in December.

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Hasekamp argued in a June 11 article that the Dutch government must enforce an immediate total ban on crypto. He cited the common anti-crypto arguments, claiming that cryptocurrencies like Bitcoin are unable to fulfill any of the three functions of money as a unit of account, means of payment or store of value.

An award-winning economist Nouriel Roubini has already admitted that Bitcoin could serve as a store of value, which is a major function of money alongside a unit of account and a medium of exchange.