ChainCatcher reported that the Netherlands Authority for the Financial Markets (AFM) reminded investors of the risks of cryptocurrency "pump and dump" scams and announced that the Crypto Asset Market Regulation (MiCA) will take effect on December 30. MiCA explicitly prohibits market manipulation, and the AFM will be responsible for supervising and enforcing the new regulations in the Netherlands.

The AFM said that MiCA aims to enhance transparency and market integrity in the crypto industry, although it cannot eliminate all risks. To this end, the AFM recently investigated several "pump and dump" cases and plans to strictly enforce the law after the implementation of MiCA.

In addition, industry experts warned that MiCA could cause crypto companies to move to the Middle East and increase the industry's centralization risks.