Regulator cannot get info from Dutch Crypto Mining, imposes penalty

Maria Nikolova

Meanwhile, it appears that DCM was declared bankrupt on October 23, 2018.

The Dutch Authority for the Financial Markets (AFM) is having trouble communicating with a crypto firm. Today, the regulator announced that it had issued a Cease & Desist order against Dutch Crypto Mining B.V. (DCM) because the firm has not complied with information requests from the AFM. That is why, the regulator is unable to determine whether the law is violated.

The AFM explains that DCM offers investments services related to the mining of cryptos through the website www.dutchcryptomining.nl. The AFM suspects that DCM may offer or have offered securities to the public as an investment institution. According to the Financial Supervision Act, this is not permitted without a prospectus approved by the AFM or a permission issued by the AFM. The AFM has requested information about the activities of DCM, so that it can determine whether the company has met these obligations.

DCM did not provide the requested information within the set term. Since October 5, 2018 DCM has been obliged to pay a fine. The monetary penalty payment reached the maximum amount of € 50,000 on October 15, 2018. To date, the AFM has not yet received the information. Meanwhile, it appears that DCM was declared bankrupt on October 23, 2018.

Let’s recall that, early this year, the Dutch Financial Stability Committee (FSC), which consists of representatives of the Dutch central bank DNB, the financial markets regulator AFM and the Ministry of Finance, said that cryptocurrencies themselves do not pose risks to the financial stability of the Netherlands.

However, the Committee warned consumers and financial companies explicitly about the risks of cryptos and the so-called Initial Coin Offerings (ICOs), as investors are not protected by regulation when they hold or trade cryptocurrencies. In addition, financial institutions face integrity risks because the identity of buyers and sellers can not be known or is insufficiently known.

Read this next

Inside View

Crypto Liquidity Providers: No Transaction, No Party!

One of the most integral parts of trading cryptocurrencies is ensuring seamless transactions; however, this is not always easy when you first start using cryptocurrency exchanges.

Digital Assets

Niftables launches white label NFT platform for content creators and brands

Niftables is the go-to platform for brands and creators looking to realize their NFT vision — whether they’re an individual or the biggest entertainment company in the world.

Retail FX

ACY Securities sponsors Table Tennis NSW as CFD broker bets in Australia’s youngest

ACY Securities has partnered with Table Tennis New South Wales (TTNSW) for a two-year sponsorship agreement intended to highlight the Chatswood-based multi-asset CFD broker’s brand in Australia, with a focus on the southeastern state.

Executive Moves

Peter Hetherington appointed CEO of Capital.com, Currency.com, and Shares.com

With his extensive experience driving strategy and growth for leading wealth and brokerage firms in highly regulated markets, Peter is the ideal CEO to lead the Group on its next chapter of growth and success.”

Digital Assets

Crypto platform Elwood raises $70m from Goldman Sachs, Dawn, Barclays, BlockFi, Flow, Galaxy, more

Elwood Technologies has closed a $70 million Series A funding round co-led by Europe’s largest B2B investor Dawn Capital and global investment bank, Goldman Sachs.

Industry News

Wilshire to launch Climate Change 1.5℃ Target Index with Nikkei and Hang Seng

Wilshire has announced a collective launch with Nikkei and Hang Seng to bring to market the first in a series of indexes empowering investors to transition their investments towards a low-carbon and climate resilient economy.

Industry News

Anne Boden’s Starling Bank bets big on UEFA Women’s EURO 2022 tournament

Starling Bank has launched a campaign ahead of the UEFA Women’s EURO 2022 tournament as part of its national sponsorship, the biggest ever for the bank.

Industry News

Older adults flock to financial apps as Revolut reports 215% more UK users aged 55-74 since pandemic

Data has also shown that older adults are back to travelling as the 55-64 UK age group has seen a tenfold increase in the amount spent in foreign countries over the past two years, and the 64-75 age group isn’t far behind with an 840% increase.

Industry News

Ripple replies to SEC’s last attempt and “shoves it down their throats pretty hard”

“The SEC really messed that up. How can Hinman receive legal advice from SEC lawyers for a personal opinion?”, attorney Hogan commented.

<