On Sep. 26, NLD AFM warned against pump and dump with cryptos.
NLD AFM reported that market manipulation in the trading of cryptos, particularly pump and dump, constitutes a form of market abuse that can deceive participants.
MiCA Regulation
Under the new markets in crypto-assets regulation (MiCA), organizing and participating in pump and dump will be prohibited; NLD AFM will supervise and enforce this.
NLD AFM has investigated three cases of price manipulation by pump and dumps.
MiCA regulation aims to bring the crypto sector to a higher level of maturity and better protect investors, but even under MiCA regulation, risks remain in the crypto sector.
NLD AFM views trading in cryptos as risky, advises consumers to educate themselves beforehand, emphasizing they should only trade with money they can afford to lose.
Effectiveness
As of Dec. 30, 2024, MiCA regulation takes effect and pump and dump will be banned.
