The Dutch finance ministry has denied requests for additional funding to monitor the crypto sector amid new European regulations.

The Dutch finance ministry has rejected multiple requests for additional funding from the local financial regulator to enhance its oversight of the crypto sector. According to local news reports, the ministry has also imposed limits on the contributions that the Authority for the Financial Markets can seek from the financial sector itself.

The AFM, which regulates financial markets in the Netherlands, argues that increased funding is needed to manage new responsibilities stemming from the European cryptocurrency legislation known as MiCa. The ministry, however, considers additional funding as “politically unachievable” and favors a minimal regulatory approach, a stance the AFM believes is inadequate for effective supervision, as reports indicate.

The finance ministry is reportedly less concerned about crypto-related fraud, underscoring a divergence in priorities between the two regulatory bodies. While the Dutch financial regulator has pledged to focus on areas that pose the greatest risks to consumers and investors, it hasn’t detailed its specific future plans for overseeing the crypto market.

The Netherlands has been cautious in its approach to cryptocurrency regulation. The country has several times fined large crypto exchanges for failing to comply with local registration requirements and anti-money laundering rules.