The post Dutch Authorities Issues Warning Ahead of MiCA Enforcement appeared on BitcoinEthereumNews.com.

On December 30, the Markets in Crypto-Assets Regulation (MiCA) will be put into force. The AFM has been looking into many pump-and-dump scams in the last few months. In anticipation of impending legislation, the Dutch Financial Markets Authority (AFM) issued a warning against the dangers of pump-and-dump schemes using cryptocurrencies. On December 30, the Markets in Crypto-Assets Regulation (MiCA) will be put into force. As stated in an official press release by the AFM. Market manipulation methods, such as pump-and-dump, will be outlawed in the EU as a whole according to MiCA. There will be strict enforcement of the new rules in the Netherlands by the AFM. By outlawing manipulative techniques like pump-and-dump scams, MiCA seeks to enhance market integrity and transparency in the cryptocurrency industry. Rigorous Enforcement Improved investor safety and a more developed cryptocurrency market are two goals of the Markets in Crypto-Assets Regulation (MiCAR). Nevertheless, not every crypto-related danger will be mitigated by MiCAR. The AFM has been looking into many pump-and-dump scams in the last few months in anticipation of MiCA. With the goal of establishing a precedent for rigorous enforcement once the law is in place. An asset’s value may be fraudulently inflated, like a cryptocurrency, by the use of a pump-and-dump strategy. Which involves the dissemination of false or hyped information, often through social media. In a pump-and-dump strategy, promoters purchase a significant quantity of a cryptocurrency asset at a discount before using promotional phrases to drive up its price and attract investors. After inflating the price, the scheme’s organizers dump their assets, leaving investors with devalued holdings, while they reap substantial returns. The long-term survival of digital assets depends on the crypto market’s credibility, according to AFM executive board member Hanzo van Beusekom, who said that pump-and-dump operations “undermine trust” in the industry.…

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Filed under: News - @ September 30, 2024 2:27 am