Wopke Hoekstra, the Dutch Minister of Finance has notified the Senate and House of his plans to take action regarding the regulation of cryptocurrencies, which he claims are expanding and in need of better regulation. In a public letter, Hoekstra said he intends to work with other European nations on this issue, but he acknowledges regulations will take time to develop. Hoekstra noted that the number of Dutch citizens who have invested in cryptocurrencies has jumped in the last year, with half a million households now owning it.
There is a need to close gaps in consumer and investor protection, Hoekstra said, but actions must be proportionate to the risks. Also, the integrity of the financial system must be guaranteed, as well as the integrity of the technologies supporting cryptocurrencies, such as cryptography and distributed ledger.
The European nations have recognized the risk of cryptocurrencies as the deposits are not guaranteed. There are also concerns about cryptocurrency being used for illegal purposes, such as money laundering.