The regulatory watchdog in the Netherlands issued a report on March 16 revealing plans to implement stricter policies when enacting the market in crypto asset laws (MiCA). The report was supported by the head of authority for the financial market (AFM) Laura van Geest who stated that the new crypto laws only addressed the risks.
Geest noted that enacting the MiCA regulation would require the crypto exchanges and investors to comply with the licensing requirement to operate in the European market.
Scope of the MiCA Regulation
The desire to safeguard the investors’ and consumer interest in the crypto world inspired the legislators in the European bloc to team up and formulate a comprehensive regulatory report for crypto assets. The report, renamed MiCA, will guide the regulators to control crypto transactions within the region.
Nonetheless, the MiCA regulation has obliged the regulators to invest in amending the regulation to ensure the new laws will address the challenges battling the financial sector.
After prolonged debates to amend the digital assets, legislators in Dutch have agreed to adopt stricter regulations to implement the new laws. Geest argued that the regulators demand the crypto service provider to comply with proposed licensing policies to operate in Europe.
According to the licensing requirement captured on the MiCA document, crypto investors must renew their permits after 18 months.
The AFM will implement the new regulations in partnership with other EU regulatory agencies. The team plans to strictly regulate the crypto transaction and adopt strategies to attract new foreign investors and create more opportunities within the European bloc.