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The head of capital markets supervision and transparency at the Dutch Financial Markets Authority (AFM) has declared crypto assets unsuitable for investment.
Paul-Willem van Gerwen (Paul-Willem van Gerwen) said that despite the growing market interest in trading cryptocurrency derivatives, AFM considers such trading as fraught with risks. The regulator considers this market not mature enough compared to other derivatives markets.
According to the head of the supervision department, due to the volatility of crypto products, a problem arises in which it is unclear whether the parties to the transaction will be able to fulfill their obligations. Therefore, the representative of the regulator believes, operations with cryptocurrency derivatives should be limited to wholesale trade.
AFM has no plans to ban trading in crypto derivatives anytime soon, unlike its British counterparts. However, the department can change its mind at any time, the official warns. Cryptocurrencies and cryptocurrencies, in his opinion, are not at all suitable as a means of payment or investment.
Van Gerven also mentioned the impact of the distributed ledger on clearing – non-cash payments between countries, companies or banks. In such operations, he said, the blockchain has a significant advantage over other solutions. After all, private traders practically do not participate in transactions. However, here too, a situation may arise, as in peer-to-peer networks, if proprietary traders begin to engage in clearing themselves, the official argues.
Previously, the CEO of the American crypto exchange FTX. BRETT Harrison (Brett Harrison) said that the cryptocurrency market will not reach the level of the stock market without the launch of spot derivatives.
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