⚠️ Dutch Regulator Warns of Crypto Pump-and-Dump Risks Ahead of MiCA From 30 December 2024
The Dutch Authority for the Financial Markets (AFM) has issued warnings about the dangers of pump-and-dump schemes in the crypto market in anticipation of the upcoming MiCA regulations.
📅 MiCA Comes into Effect on December 30
According to an official AFM press release, the Markets in Crypto-Assets Regulation (MiCA) will be implemented on December 30, 2024.
🚫 Pump-and-Dump Schemes Explicitly Prohibited Under MiCA
Under MiCA, manipulative practices such as pump-and-dump schemes will be explicitly banned across the European Union. The AFM will oversee and enforce these new regulations in the Netherlands.
📊 MiCA Aims to Enhance Transparency and Market Integrity
MiCA is designed to improve transparency and market integrity within the crypto sector by prohibiting manipulative practices like pump-and-dump schemes.
📉 How Pump-and-Dump Schemes Work
A pump-and-dump scheme artificially inflates the price of a crypto asset by spreading misleading or exaggerated information, often via social media such as Telegram and twitter. Once the price is driven up, the organizers sell their holdings at a profit, leaving others with devalued assets.
💬 AFM Stresses the Importance of Trust in the Crypto Market
Hans van Beusekom, an executive board member of the AFM, stated that pump-and-dump schemes “undermine trust” in the crypto market, which is “essential for the long-term potential of digital assets.”
This version highlights the key points of the AFM's warnings and the upcoming MiCA regulations.
Team Coinpower
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