The explosion in cryptocurrency adoption continues to surpass expectations. Many people have or are planning to use digital assets in their transactions.
More than 1 Million People in the Netherlands Use Cryptocurrency
According to a market research platform, Multiscope, nearly 2 million Dutch residents own crypto tokens. The survey also revealed that Bitcoin is the most preferred digital coin owned by people.
In a survey involving more than 4,000 Dutch residents, Multiscope revealed that one in seven Dutch residents owns one or two crypto tokens.
The last study on crypto use in 2018 implies that roughly three-quarters of the users are males. In addition, the age range of the respondents in the survey is between 18 and 34 years.
Furthermore, the users also possessed higher education and had a monthly income of 3,500 to 5,500 Euros.
As a member of the European Union (EU), the Netherlands runs a market economy where supply and demand drive transactions. Due to it being part of the EU bloc, the country, like others, has strict crypto regulations.
Crypto exchanges must comply with the anti-money directive known as the 5AMLD. As part of the regulations, entities providing crypto services must give details about themselves and their customers. The rule has undoubtedly impacted crypto businesses within the EU bloc.
However, the EU is still lagging behind other countries regarding widespread crypto adoption. Roughly 17% of EU citizens have embraced cryptocurrency, and the numbers are not encouraging.
Meanwhile, industry observers have pointed out that it is not as gloomy as it appears because Europe will experience a boom in digital token use in the coming years.
According to the analysts, reduced faith in the government-controlled central banks, higher education rates, and cheap transaction fees that crypto comes with will drive adoption up.
But the region awaits the implementation of the MiCA legislation before it can forge ahead. The MiCA bill is the only legislation with a framework to regulate all EU member countries.
The EU appears primed to be the next crypto hub if the current forecast is worth considering.
The Dutch Central Bank Slammed Binance with $3.35 Million in Fines
According to reports, the De Nederlandsche Bank (DNB) slammed popular crypto exchange Binance with a 3.3 million Euros fine on July 18. The regulator accused Binance of offering crypto services in the country without approval.
Moreover, the DNB cited Binance’s global status and its large customers in the Netherlands as reasons it fined the crypto exchange. The regulator also revealed that Binance has benefitted from its competitive advantage without paying any operation levies to the central bank.
As a result, the regulator believes that the fine is commensurate with the offenses committed by the exchange. The penalty will cover other costs incurred by the DNB as it relates to the supervision of the platform.
Like other signatories to the 5AMLD, virtual asset service providers (VASPs) in the Netherlands must register with the regulatory body. Hence, Binance violated the registration guidelines as the offense is considered severe.