At the World Economic Forum (WEF) in Davos, Switzerland, Dutch Central Bank Chief Klaas Knot aimed at jurisdictions that attract bad actors in the cryptocurrency space, media reports said.
Knot spoke at a forum and encouraged other countries to follow the Netherlands’ lead in regulating the cryptocurrency industry. He warned that jurisdictions that do not take action to prevent bad actors from exploiting the cryptocurrency space could face serious consequences. “We must ensure that the crypto industry is not used for money laundering, terrorist financing, or other criminal activities,” Knot said. “We must also ensure that the crypto industry is not used to evade taxes or to manipulate markets.”
Knot’s comments come as the Netherlands is taking a leading role in the global effort to regulate the cryptocurrency industry. The country’s Minister of Finance, Wopke Hoekstra, recently announced plans to introduce a licensing system for cryptocurrency companies. The system would require companies to meet certain standards to operate in the Netherlands.
Both the Dutch Central Bank Chief and the UAE Minister of State for Financial Affairs, Obaid Al Olama, spoke at a forum and agreed that countries should take a proactive approach to regulate the cryptocurrency industry. Al Olama noted that the UAE is already taking steps to do so, emphasizing the need to prevent money laundering, terrorist financing, criminal activities, tax evasion, and market manipulation.
Knot and Al Obama have both commented on the increasing scrutiny of the global cryptocurrency industry from regulators. The US, the UK, and other countries have already taken steps to regulate the industry, and the European Union is expected to follow suit soon.
The Netherlands and the UAE are leading the way in the global effort to regulate the cryptocurrency industry, and their efforts are being closely watched by other countries. As more countries take steps to regulate the industry, bad actors will likely be deterred from taking advantage of the cryptocurrency space.