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- Netherlands authorities plan to educate students about cryptocurrency investments.
- The authorities express concerns about crypto advertising.
- Little has been done in terms of crypto regulations in the Netherlands.
Netherlands authorities are planning to carry out education on investing in crypto investments. The authorities believe this would help students not to be misled by advertising.
Crypto Advertising Concerns
Crypto ads are now everywhere, as crypto firms and projects compete for public attention and try to make crypto more mainstream. However, several financial authorities are concerned that many of these ads are misleading, not giving enough attention to the risks involved in the crypto market while promising people unrealistic gains.
The Netherlands Authority for the Financial Markets (AFM) is just one of those financial authorities. However, as reported by local news platform NL TIMES, the AFM takes a novel approach to tackle these concerns. The AFM has revealed that it will be educating students about investing with a particular focus on cryptocurrencies in the coming months.
According to the report, at least 25% of youths in the country trade cryptocurrencies. The AFM hopes to debunk falsehoods that several youngsters may hold about the crypto market.
An AFM official, Tom Smiers, said, “With cryptos, we have serious concerns that you will be tempted to make money very quickly,” adding, “We see that there is a lot of advertising and one advertisement is even more attractive than the other. Earning money quickly is often central.”
In countries like the UK and India, the authorities have laid down guidelines for crypto advertising in the region. In the UK, guidelines take effect from May, while in India, they will be enforceable as early as April.
Not much has been done in terms of Crypto regulations in the Netherlands. However, like many others in other parts of the world, the AFM and other financial authorities continue to release warnings about crypto trading.
In the meantime, broader regulations are coming as an EU member state; the Netherlands would be bound by EU crypto regulations which are rapidly developing. The EU has been in haste to develop crypto regulatory frameworks since Russia’s invasion of Ukraine as they hope to ensure Russia does not skirt sanctions using the crypto market.
Remarkably, last Thursday, in a move that has attracted a lot of backlash from crypto industry participants in the region, the EU approved a Transfer of Funds Regulation (TRF) provision that would effectively restrict the use of anonymous or self-hosted wallets in the region. Stakeholders now look to the Trilogue phase in hopes that the members of parliament will revoke the provision.
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