The Netherlands Authority for the Financial Markets (AFM) has issued a reminder that while creating crypto-assets has become easier than ever, compliance with legal requirements remains essential. New tokens and memecoins can now be launched in minutes through online platforms, but offerors must still adhere to the European Markets in Crypto-Assets Regulation (MiCAR). These rules aim to protect consumers and maintain market integrity.
Hanzo van Beusekom, AFM Executive Board Member, emphasized that the ease of creating crypto-assets should not overshadow the responsibility to comply with applicable rules. Offerors must ensure clear information is provided to consumers and take responsibility for their actions.
Key obligations include the requirement that only legal entities can offer crypto-assets to the public, the necessity of a white paper, and the need for fair, clear, and non-misleading marketing communications. The AFM has noted that many individuals offering crypto-assets, including memecoins, are unaware of these rules, which can expose them to fraud and market abuse.
The AFM advises consumers to conduct thorough research before investing in crypto-assets, checking the legitimacy of the offeror and the availability of a white paper. Consumers should be wary of unrealistic promises and social media messages promoting quick profits. The AFM considers crypto-asset trading high-risk and recommends investing only money that can be afforded to lose.
If the AFM finds that legal requirements are not met, it may take enforcement actions, including warnings, instructions, or fines.