Holland's Finance Ministry Discusses Bitcoin Ban

Holland is one of the friendliest countries for crypto, yet the government still sees Bitcoin as a threat.

Political forces in Holland have raised a discussion for the effect of Bitcoin and the potential effect of an unannounced form of banning. The discussion is rather shocking, given that Holland is in the leading positions of Bitcoin adoption, and in the top 5 of Bitcoin node distribution.

The level of full nodes in a country signals the rate of Bitcoin's popularity and adoption, and Holland is at the moment hosting more than 550 full nodes, or around 4.7% of the total nodes in the world. In addition, the capital Amsterdam has transformed itself into a venue for crypto meetups.

The pressure to regulate, or possibly ban access to Bitcoin comes from local politicians, quoted by De Telegraf, a Dutch newspaper.

"Parties in the House of Representatives demand measures against so-called crypto coins and other controversial financial products," said Holland's Finance Minister Wopke Noekstra.

According to the minister, the mood in the political circles is that a Bitcoin ban would be desirable, but tests would be needed, and the next few weeks would reveal the decision.

At this point, it is unknown if the intentions of Holland are clear. But it is the first time that a Western European government is becoming more wary. In recent months, Ukrainian politicians also raised concerns and proposed a bill to regulate cryptocurrencies, but there were only reasonable limitations.

Holland is also home to the Gulden cryptocurrency, an app-embedded digital asset which also enjoys the partnership of several small Dutch banks.

But the Gulden remains risky, at least in terms of personal finance, with significant price fluctuations. While the coin's intentions were good, speculative trading and pumps are making the asset unpredictable.

Bitcoin's Brand vs Politicians

Holland has many more digital currency projects - but once again, Bitcoin's prominent bank serves like a lightning-rod for government strikes.

Holland is also home to LiteBit.eu, one of the one-stop-shop places for buying a vast array of altcoins outright for Euros, with SEPA transfers and debit cards.

So those facts, along with the former involvement of the Dutch Central Bank and the Finance Ministry with educational and experimental blockchain projects, are making the recent news of a ban sound either shocking, or simply political dividend-seeking.