Dutch Regulator Warns Against Crypto Market Manipulation

In preparation for upcoming regulation in the European Union, the Dutch Authority for the Financial Markets (AFM) has issued a warning about the dangers of cryptocurrency pump-and-dump schemes.

The AFM stressed the importance of the Markets in Crypto-Assets Regulation (MiCA), which will officially take effect on Dec. 30.

This regulation will explicitly prohibit market manipulation practices, including pump-and-dump schemes, in the EU.

The AFM will oversee and enforce these new rules in the Netherlands. The purpose of MiCA is to promote transparency and integrity in the crypto industry by cracking down on fraudulent activities.

However, the AFM acknowledges that while MiCA may mitigate some risks in the crypto sector, there will still be remaining risks for investors.