The government in the Netherlands is planning to include public opinion or a crypto user data disclosure. In accordance with EU standards, the Dutch government has requested public input on draft legislation that would require crypto service providers to collect and report user information to the local tax office.
The main goal of the measure, according to a recent news release from the Netherlands Ministry of Finance, is to clarify Bitcoin ownership in order to prevent tax evasion and avoidance.
The Ministry pointed out that since cryptocurrency holders are already required to register their holdings to the Belastingdienst, the Dutch tax body, the proposed legislation would not place any new duties on them.
The move stays in tandem with other European Union nations who have been also trying to put regulations on crypto markets, likely to bring it into a more formal use.
Dutch Crypto Rules: What Do They Say?
The Netherlands has a relatively supportive market for cryptocurrency owners. As one of the most crypto-friendly nations, the Netherlands is seeing a sharp rise in the use of cryptocurrencies by Dutch individuals and companies.
However, this wasn’t the case always. The De Nederlandsche Bank (DNB) published a position paper in January 2018 asserting that cryptocurrencies have no bearing on monetary policy and do not serve as money.
In a letter to the Dutch parliament, the country’s finance minister stated that while a ban on cryptocurrencies is undesirable, it would be advantageous to regulate cryptocurrency transactions on a European or global scale.
Only wallet providers and cryptocurrency exchanges are subject to the fifth European Directive on Anti-money Laundering and Counter-Terrorist Financing, which was put into effect by the May 21, 2020 Dutch Implementation Act.
Despite this, the Dutch nation slowly embraced crypto as a part of its economy, relaxing its rules as more and more people jumped on the bandwagon.
Will the Crypto Market In the Netherlands Grow In The Future?
The market for cryptocurrencies is anticipated to increase significantly in the Netherlands in the future. It is anticipated that this market will generate US$400.3 million by 2024, according to market data.
A predicted total revenue of US$381.2 million by 2025 is the outcome of this growth, which is expected to continue at an annual growth rate (CAGR 2024-2025) of -4.77%.
In 2024, the Netherlands’ cryptocurrency market is projected to generate an average revenue per user of US$71.3.When seen from a global perspective, the United States has the greatest revenue in the cryptocurrency sector when compared globally, with US$9,788.0 million in 2024.
It is anticipated that by 2025, there will be 5.64 million users in the Netherlands’ cryptocurrency sector. The percentage of the population that uses the cryptocurrency market, or the user penetration rate, is predicted to be 31.77% in 2024 and rise to 31.84% in 2025.