Netherlands: Issued AFM guidance concerning crypto pump-and-dump schemes under MiCA

On 26 September, the Dutch Authority for the Financial Markets (AFM) issued a guidance warning about the use of crypto pump-and-dump schemes under the Markets in Crypto-Assets Regulation (MiCA), which will come into force on 30 December 2024 and will prohibit the operation of crypto pump-and-dump schemes. These schemes entail artificially inflating the price of a cryptocurrency through deceptive promotional activities, subsequently leading to a sell-off that results in substantial losses for unsuspecting investors. The AFM encourages consumers to exercise caution and to be aware of the indications of manipulation, such as exaggerated claims regarding the potential for high returns.