Following an article published in the Dutch Financial Times on 28 July 2024, members of the Dutch Parliament submitted questions to the Minister of Finance regarding the upcoming crypto supervision by the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, AFM) under the Markets in Crypto-Assets Regulation (MiCAR). The aforementioned article contains criticism aimed at the Ministry of Finance for being reluctant to allocate sufficient funds to the AFM for crypto supervision. Additionally, it stated that the Ministry has imposed strict limits on the fees the AFM can charge crypto-service providers for licence applications, even though those fees could cover the costs of supervision. According to the AFM, these funding limitations may hinder their ability to properly oversee the crypto market.
On 2 September 2024, the Minister of Finance responded to the parliamentary inquiries, acknowledging that the phased implementation of the MiCAR framework introduces new responsibilities for the AFM in overseeing crypto supervision. Following consultations with the AFM, it was decided that the authority would adopt a strategy of what it terms ‘minimal supervision’ for the crypto market in the Netherlands. Under this approach, the AFM will concentrate its efforts on addressing the most significant risks within the crypto sector.
The Minister explained that the decision for ‘minimal supervision’ stems from uncertainties within the sector, such as the unknown number of crypto-asset service providers that will operate in the Netherlands. The Minister also emphasised that crypto-asset service providers licensed in one European Union (EU) Member State can operate across the entire EU, making it difficult to accurately predict the level of supervision required. Moreover, the volatile and rapidly evolving nature of crypto markets adds to these challenges. As a result, the AFM and the Ministry have agreed to evaluate the effectiveness of this approach during 2025. Additionally, the Minister emphasised that while stricter supervision could reduce some risks, it cannot entirely eliminate the inherent risks of the crypto market. If future developments necessitate increased oversight, additional funding could be allocated to enhance the AFM’s supervisory capacity.