The director of the Netherlands’ Central Planning Bureau said last week that the country should ban all cryptocurrency transactions. The official mentioned security issues and fraud risks. However, Finance Minister Wopke Hoekstra disagrees.
According to the director of the Central Planning Bureau of the Netherlands Pieter Hasekamp, sooner or later the entire cryptocurrency market will collapse. Therefore, in the Netherlands, it is necessary to introduce a ban on trading, mining and even storing cryptocurrencies. In his opinion this will protect investors. Acoording to him, digital gold has no intrinsic value. And the coin itself doesn’t fulfill any of the three functions of money: a unit of account, a means of payment, and a store of value. Of course, it wasn’t without other widely circulated arguments. Such as: problems related to security, risks of fraud and communication with criminal groups. In a word, a full set of stamps that bank managers are voiced every year. It is clear that the bureaucrat’s statements don’t reflect the official position of the Netherlands’ government.
Hasekamp’s speech was commented on by traders. They drew attention to the fact that the director of the bureau of economic analysis wants to ban cryptocurrencies due to the inevitable fall in their prices in order to protect investors. Traders clarified: “Do we also need to ban real estate, stocks and commodities in order to avoid a collapse in their prices”?
The Netherlands’ Finance Minister Wopke Hoekstra strongly disagrees with crypto ban
The Netherlands’ finance minister, Wopke Hoekstra, strongly disagrees with the total ban on cryptocurrency. He believes that a complete ban on cryptocurrencies in the country is unnecessary. He stressed that he fully understands the concerns voiced by Hasekamp. However, a complete ban on digital assets would be less effective than proper regulation. In addition, a sharp transition to a prohibitive policy will result in numerous lawsuits by companies against departments.
In 2020, the Netherlands’ authorities obliged cryptocurrency service providers to verify incoming and outgoing transactions in accordance with the Sanctions Act. Local Bitcoin exchange Bitonic required customers to confirm each withdrawal address by sending a screenshot of the wallet or a signed message.
Thus, the industry already regulated by the Netherlands’ government to a certain extent.
“In my experience, regulation of an asset is always more effective than a complete ban”, said the Netherlands’ finance minister. The minister also adds that the regulation should cover the entire European market. He also recognized the need to introduce laws for digital asset service providers.
The minister stressed the inadmissibility of money laundering using cryptocurrencies.
And he also recalled that in the current environment, investors invest in digital assets at their own peril and risk. So, they should prepare for possible downturns in the market.
The legality of cryptocurrency is still unclear
In many countries, the legality of Bitcoin is still unclear. In India, for example, the government is constantly changing its stance on cryptocurrency and is giving an incomprehensible message that Bitcoin is neither legal nor illegal.
El Salvador, however, is very clear about its views on cryptocurrency. The Central American country recently became the first country in the world to accept Bitcoin as legal tender. However, this step was not to everyone’s taste, for example, the IMF said that the actions of El Salvador “raise many legal and economic issues”.