Dutch Authority for the Financial Markets to scrutinise crypto advertising and disclosures under MiCAR while warning consumers trading remains very risky

The Dutch Authority for the Financial Markets has set out its supervisory focus for crypto-asset service providers under the EU Markets in Crypto-Assets Regulation (MiCAR), which it has supervised since 30 December 2024, and reiterated that crypto trading remains very risky for consumers even with regulatory oversight. MiCAR requires crypto service providers to obtain an AFM licence and comply on an ongoing basis with requirements including those on information provision and marketing. Firms must provide consumers with correct, clear and non-misleading information, including on historical returns, staking remuneration and promotional offers, and must prominently present tariffs, costs and fees on their websites; advertising must also be clearly recognisable as such and accompanied by appropriate risk warnings. Drawing on exploratory reviews conducted in 2023 and 2024 (before MiCAR applied), the AFM reported that not all providers’ disclosures met these expectations, citing instances of references to “safe” crypto trading without sufficient context and missing information on fees and costs, and indicated it will supervise these areas closely. The AFM also noted limitations in MiCAR, including few powers to prevent market abuse and no product development requirements.