**Dutch AFM Warns of Crypto Pump-and-Dump Schemes Ahead of New Regulations**

The Dutch Authority for the Financial Markets (AFM) has issued a warning about the risks of cryptocurrency pump-and-dump schemes as new regulations loom. The Markets in Crypto-Assets Regulation (MiCAR) is set to take effect on December 30, aiming to enhance transparency and integrity in the crypto market by banning manipulative practices.

- **What is MiCAR?**

- MiCAR is designed to mature the crypto sector and protect investors.

- It explicitly prohibits pump-and-dump schemes in the EU.

- **AFM's Role:**

- The AFM will oversee and enforce these new rules in the Netherlands.

- They have already investigated several pump-and-dump cases to set a strict enforcement precedent.

- **Pump-and-Dump Explained:**

- This scheme involves artificially inflating an asset's price through misleading information.

- Organizers buy low, hype the asset, then sell at a high, leaving other investors with losses.

Hanzo van Beusekom from the AFM emphasized that such schemes undermine trust in the crypto market, crucial for its long-term potential. However, some industry voices, like Anastasija Plotnikova of Fideum, warn that MiCAR could push crypto firms to relocate to the Middle East, raising concerns about market centralization.