Some new interesting information has been released by the Nederlandse Omroep Stichting (NOS) on the 18th of January. It has been reported that the Dutch government is considering tight regulations on the Blockchain sector. This naturally includes all of the cryptocurrency companies, which are now very concerned as to what these regulations are going to look like, and how much damage they will inflict on their future plans.
We already know that the Minister of Finance in the Netherlands, Pete Hoekstra was considering an implementation of crypto licenses within the country’s border. As soon as the considerations were made, he started following through with the plan. The consideration was sparked by a request that Hoekstra made to the Bank of the Netherlands. In response to the request, the bank seems to have given him advice on regulating the firms and bringing them under the government’s control, which could ultimately lead to more taxations and hold-backs on an already declining industry.
Monitoring and reports to come
The fact about social trading was that no government would intervene in the crypto holders’ dealings. However, it seems like they just cannot stay away. Naturally, there are several reasons as to why the government should regulate these companies, but the reasons as to why they shouldn’t far outweigh their contraries. The licensing system would do nothing but force the crypto wallet provides and exchanges to keep an eye on their customers’ transactions and report everything. But as you can already see, if such measures are implemented, the whole point of cryptos will be nullified.
The argument as to why such measures need to be implemented were the fights against terrorism and it’s financing & money laundering activities. Sure, monitoring or outright banning the system may help a little, but in the long run, they would be hurting more people than they would be helping. Other measures could have easily been implemented.
Crypto startups may crumble
The fact is that not everybody in the crypto community views regulations as a bad thing. On the contrary, they believe that it is quite healthy as it adds more safety. However, that safety is bought by giving away private information to these corporations.
As a matter of fact, the companies themselves would suffer from documenting all of the activities that their customers conduct. Can you imagine the size of the databases required to store all of that transaction information? A startup is short on cash as it is, and now new expenses will have to be covered. Expenses for which the money could have gone elsewhere in terms of development.