Instead of completely banning it outright, the finance minister of the Netherlands has called for regulation of digital currency, which he thinks is a more effective way of tackling the growth in digital currency adoption in the country. Finance minister Wopke Hoekstra said the Netherlands should not prohibit citizens from using crypto entirely despite the risks but should instead take a supervisory approach, both at a national and European level.
Regulating is a better option than banning cryptocurrency.
The finance minister’s comments come following remarks from local officials calling for a ban on cryptocurrency used in the country, citing the volatility and risks inherent in digital currency transactions. Responding to the suggestion, Hoekstra said government supervision and proper regulation would provide a more effective solution for addressing the needs of the Dutch cryptocurrency sector. “My observation is now that supervision is more effective than a total ban in the Netherlands,” the finance minister added. Several countries worldwide are currently working on regulating the crypto sector.
Governments keen on regulating cryptocurrencies.
The finance minister also referred to a prior warning issued back in 2017 just a matter of weeks before BTC hit $20,000 for the first time, where he warned of the risks of trading in digital currency, which he said was “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,” he added. Earlier, the Dutch Bureau for Economic Analysis director, Pieter Hasekamp, said that the government should immediately outlaw all dealings in BTC, including mining, trading, and holding BTC tokens. Governments around the world are very keen on regulating cryptocurrencies.