The Dutch Authority for the Financial Markets (AFM) has reminded creators and offerors of cryptoassets, including memecoins, that public offerings must comply with the European Union’s Markets in Crypto-Assets Regulation (MiCAR). The ease of launching tokens through online platforms does not remove legal obligations. Consumers should remain alert to misleading claims and unrealistic promises. Only legal persons may offer cryptoassets to the public, not private individuals. A whitepaper must generally be prepared, notified and published. Advertising must be identifiable as such and consistent with the whitepaper. These communications, including website and social media content, must be accurate, clear and not misleading. Breaches can lead to enforcement action, including warnings, directions or fines, depending on the circumstances. Some creators and offerors appear unaware of the applicable rules, despite these assets’ susceptibility to deception, fraud and market abuse. Before investing, consumers should check who the offeror is, whether it is a legal person and whether a whitepaper is available, including the risks it describes. Social media promotions promising quick profits warrant particular scrutiny. Consumers should trade only with their own money that they can afford to lose.
Dutch Authority for the Financial Markets reiterates MiCAR obligations for public cryptoasset offers, including memecoins
The Dutch Authority for the Financial Markets has reiterated that public cryptoasset offers, including memecoins, must comply with the European Union’s Markets in Crypto-Assets Regulation. Only legal persons may make such offers, a whitepaper is generally required, and advertising must be accurate, clear and not misleading. Breaches can trigger enforcement, while consumers should verify offerors and disclosures and remain alert to unrealistic profit promises.