Netherlands Central Bank President: Cryptocurrencies are No Threat
October 19, 2018
The head of the Netherlands Bank Klaas Knot has stated, trading crypto platforms are the bridge between the new and the old financial systems and regulators have to monitor them in compliance with rules existing within the country.
Knot told that for now the Central Bank together with the Authority for the Financial Markets (AMF) is formulating specific rules for crypto exchanges. He added that digital assets today constitute no threat for financial stability in the world but it’s just the moment for authorities to turn their attention to them for growing crypto market will get more vulnerable which may cause acute issues.
The Central Bank president also noted the fact that cryptocurrencies have their drawbacks like cases of money laundering, lack of investor security accreditation and high market volatility. That is why, as for Knot, there is a need in establishing a European Union or united international regulator for digital asset market. Meanwhile he added that lack of such does not imply the Netherlands must keep away from the industry at all.
Knot also stressed that global popularity of cryptocurrencies can also be regarded as a downside when considering authorities regulating related services and monitoring crypto exchange operations within specific country:
“Given the international character of cryptos, a global or European approach is needed. But that will take time. Meanwhile, we at the Dutch central bank are assessing the possibility, together with the Authority for the Financial Markets, of a proportional supervisory framework for cryptos.”
It is to be added that Knot is also the head of the Financial Stability Board (FSB) which published its research crypto report last week. The document also said that digital currencies do not threaten financial stability for any country.