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Wopke Hoekstra, the Dutch finance minister, believes that regulation is more successful than outright prohibition.
A cryptocurrency prohibition is not the best answer for the Netherlands, according to the country’s finance minister, after a local politician asked for a total ban on cryptocurrencies.
The Netherlands should regulate the cryptocurrency market instead of prohibiting its citizens from using crypto entirely, Dutch minister of finance Wopke Hoekstra stated, according to a Friday report by local news agency NU.nl.
The official confessed to certain dangers involved with the cryptocurrency market, allegedly noting that he recognised the worries highlighted by Pieter Hasekamp, head of the Dutch Bureau for Economic Analysis. The minister emphasised the need of ensuring suitable laws for virtual asset service providers in order to avoid risks associated with concerns such as money laundering.
“My observation is now that supervision is more effective than a total ban in the Netherlands,” Hoekstra stated, reportedly noting that it’s important to oversee the crypto market at the European level.
Hoekstra also stated that he had issued a warning about cryptocurrency-related dangers in 2017, emphasising that crypto investors should understand that their bets on cryptocurrencies are “entirely at their own expense and risk.”
“That’s going very well now, but we’ve seen big dips and peaks along the way,” Hoekstra remarked in November 2017, only a few weeks before Bitcoin (BTC) broke the $20,000 barrier for the first time in history in December.
As previously reported, Hasekamp claimed in a June 11 piece that the Dutch government must immediately impose a blanket ban on Bitcoin mining, trading, and holding. He referenced traditional anti-crypto arguments, stating that cryptocurrencies such as Bitcoin cannot fulfil any of money’s three functions as a unit of account, a method of payment, or a store of value.
Some of the world’s most vehement Bitcoin sceptics, such as award-winning economist Nouriel Roubini, have already conceded that Bitcoin might serve as a store of value, which is a primary function of money in addition to serving as a unit of account and a medium of exchange.