THELOGICALINDIAN - The Dutch banking regulator The Netherlands Authority for the Banking Markets AFM has appear a letter addressed to new and currently absolute institutions invested in cryptocurrencies The letter seeks to acquaint that assertive cryptocurrency advance activities may crave licensing from the AFM about expresses austere doubts as to whether managers of advance institutions in cryptos can accommodated the requirements for licensing
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Dutch Financial Regulator Issues Letter to Investment Institutions Operating With Cryptocurrencies
The letter seeks to abode individuals gluttonous to administer as an ambassador of an advance academy in cryptos, in accession to “existing […] administrator[s] of an advance academy alive in cryptos, or [individuals] planning an advance academy to administer cryptos.”
The AFM states that it is agreement the “heavy requirements” on institutions advance in cryptocurrencies due to “strong concern[s]” as to whether managers of advance institutions who advance in cryptos are able to accommodated the abounding licensing requirements. The AFM’s apropos principally attention “the aciculate access in absorption in new bazaar parties to accommodate these casework in aggregate with the usually bound ability about applicative regulations,” which about after-effects in “ignorance” as to how to accommodated “supervisory standards in practice.”
The AFM additionally requests that beforehand academy acquaint the bureau apropos “any adapted amplification of [cryptocurrency] artefact offering[s]” able-bodied in beforehand of accouterment such.
Licensing Requirements for Dutch Investment Institutions
The AFM to analyze what affairs in which the ambassador for an advance academy will be appropriate to seek licensing from the regulator. The letter states that the “threshold amount for an ambassador of (an) open-end advance academy (s) [is] €100 actor [approximately $1,162 actor USD].”
“An ambassador of an advance academy charge access a cardinal of important licenses to [meet] licens[ing] requirements,” the AFM continues. “These requirements are advised to accommodate to assure the interests of retail investors and to ensure the able activity of retail investors market. No acumen is fabricated amid altered forms of investing.”
The AFM has “drawn up a cardinal of questions” that administrators of institutions invested in cryptocurrencies will be appropriate to acknowledgment in adjustment to administer for the appropriate licensing. Said requirements affect to the institution’s clamminess management, appraisal protocols, the artefact development process, and accumulator considerations.
What is your response to the AFM’s new licensing accoutrement for institutions invested in cryptocurrencies? Share your thoughts in the comments area below!
Images address of Shutterstock, www.afm.nl
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