Unregulated crypto trading services targeting Dutch users as crypto investments soar
With the investment in cryptocurrency skyrocketing in the Netherlands, illegal crypto trading services are stepping up campaigns to target Dutch users. At least three unregulated exchanges from abroad have entered the Dutch market, typically using influencers to lure Dutch customers, Financeele Dagblad reported
In September last year, the Netherlands Authority for the Financial Markets (AFM) warned about the illegal cryptocurrency exchange Mexc. According to FD, it had little effect.
Since the regulator warning, Mexc has introduced bitcoin loans, iDeal payments, commission-free crypto trading, and futures contracts for stocks, silver, and gold in the Netherlands. The trading service offers new customers up to 600 percent interest on their cryptocurrencies.
Bitmex and Toobit have also joined the Dutch market. Toobit raffles prizes to customers who trade extra heavily. Bitmex lures new customers with up to $5,000 in gifts.
The reason so many new and unregulated players are targeting the Dutch market may be because it is becoming an increasingly lucrative one.
On Tuesday, De Nederladsche Bank (DNB) reported that crypto investment ownership in the Netherlands has skyrocketed. At the end of 2020, Dutch households held approximately €81 million in cryptocurrency investments. By October last year, that had climbed to €1.2 billion. These investments are not in the form of actual cryptocurrencies like Bitcoin itself, but related investment funds known as ETFs, debt securities, and shares in companies that purchase cryptocurrencies.
According to DNB, the sharp increase in crypto investments is due to the significant increase in the value of underlying cryptocurrencies. The price of bitcoin rose by approximately 72 percent before the price drop at the end of last year, for example.
