Pieter Hasekamp, Dutch Official for Economic Analysis, has stated that the government has to ban cryptocurrencies in the country. According to him, crypto assets are extremely volatile and a market crash is inevitable. Hasekamp said the Netherlands should act as soon as possible. He added,
For investors and governments alike, the last person to act is the loser.
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Hasekamp also said that several countries have taken steps to limit cryptocurrency use and trading due to their financial instability, criminal use, and serious cases of fraud.
While the Netherlands has been making concerted efforts to increase its regulations on cryptocurrencies, they have been unsuccessful. Hasekamp stated that the Netherlands is lagging behind in such struggles to reduce the use of crypto assets.
Difficulty banning cryptocurrencies
The nature of cryptocurrencies and the fact that they are primarily traded online makes it very difficult for the government to ban them altogether.
Crypto assets are also not issued by financial institutions, so the government has no control over their use and distribution.
Their decentralized nature and the fact that they are mostly traded internationally make it even more difficult to prevent people from trading or investing in them.
Some officials are not buying Hasekamp’s idea
While Hasekamp proposes a total ban on cryptocurrencies, some of his colleagues have different ideas. For example, Dutch Finance Minister Wopke Hoekstra has opposed the cryptocurrency ban. When the government proposed a ban on digital assets in 2018, it was one of the government officials who opposed the idea.
However, Hasekamp still stands his ground, explaining that people have the wrong view of crypto assets. According to him, people think that cryptocurrencies will replace fiat currency in the future, but that will never happen.
Hazekamp’s statement comes just a week after the Chinese government banned cryptocurrency mining in the country. This has led to a massive exodus of crypto miners from China, a country where most of the world’s crypto mining hash rate is generated.
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