Dutch watchdog warns memecoin launchers over EU crypto rules

Anyone who offers a crypto-asset to the public, memecoins included, must comply with the European crypto regulation MiCAR, the Dutch Authority for the Financial Markets (AFM) says. It says creators do not always seem aware of the rules. The AFM calls that worrying, because such assets are extra susceptible to deception, fraud and market abuse.

Why it matters

• Only a legal entity may offer crypto-assets to the public. Private individuals may not.
• A whitepaper (a disclosure document) must generally be drawn up, notified and published.
• Advertising must be correct, clear, not misleading, consistent with the whitepaper and recognisable as advertising, on websites and social media too.

Launching a token is now easy. New tokens and memecoins are increasingly created on online platforms where almost anyone can make one quickly. The AFM says the technical barrier is low, but the obligations remain. The rules are meant to protect consumers and support the integrity of the crypto market.

Launching a crypto-asset can be done within minutes these days. That accessibility must not be confused with being non-binding.Hanzo van Beusekom, AFM board member

Hanzo van Beusekom, an AFM board member, said offerors must learn the rules beforehand and meet their legal obligations. "Consumers must be able to trust honest information and offerors must take responsibility," he said.

The AFM also urges consumers to stay alert to misleading claims and unrealistic promises. It says it can act if the requirements are not met.