Dutch finance minister warns citizens of cryptocurrencies' high risks

Europe Materials 9 March 2018 21:44 (UTC +04:00)

The Dutch government warns the country's citizens of high and insufficiently studied risks associated with bitcoin and other cryptocurrencies, the country's finance minister Wopke Hoekstra said, Sputnik reported.

"Investing in cryptocurrencies is not without risk. In contrast to savings, money put into cryptocurrencies does not fall under a deposit guarantee system and there is generally no central issuer to claim from in the event of abuse," the country's finance minister Wopke Hoekstra told the country's parliament, as quoted by the Dutchnews.nl portal.

The minister said he would study options to hedge the risks. The government is considering a ban on advertising of risky financial products targeting non-professional investors, Hoekstra noted.

The minister also intends to oblige financial institutions to warn consumers of the risks of taking loans to buy cryptocurrencies. New legislation must also be introduced to improve transparency of cryptocurrency trading, he added.