Introduction: Halsema’s Call for a Crypto Ban
In April 2025, Amsterdam Mayor Femke Halsema sparked political controversy by advocating for a nationwide ban on cryptocurrency payments. Her argument: cryptocurrencies like Bitcoin enable organized crime through anonymity and cross-border transactions. But does this align with the reality of criminal financial flows? This article analyzes data from the Netherlands and the EU, compares cash and crypto, and critiques Halsema’s proposal.
Part 1: The Netherlands – Cash Reigns Supreme
1.1 Cash: €13 Billion Annual Money Laundering
According to research firm Ecorys (2021), the Netherlands launders €10.3–13 billion in criminal proceeds annually, with 94% using traditional methods:
– Cash compensation schemes: €3–5 billion flows through unreported cash wages in construction and logistics, often tied to tax evasion and labor exploitation.
– Bulk cash smuggling: Drug cartels transport €50–100 million monthly in cash abroad, hidden in trucks.
Case Study: Visum NV (2023)
A Dutch transport company served as a front for drug cartels. Police intercepted €12 million in €500 bills destined for Colombian cocaine suppliers.
1.2 Cryptocurrency: €41 Million in Cybercrime
Despite crypto’s notoriety, its volume remains limited:
– 2024 Police data: €41 million in confiscated crypto, primarily from ransomware attacks on hospitals and darknet markets (e.g., MDMA, weapons).
– Bitcoin ATMs: Amsterdam’s 14 machines process €2.3 million monthly, with 12% flagged as suspicious (FIU, 2024).
Case Study: Ransomware Attack on Erasmus MC (2024)
Hackers demanded €4 million in Monero (XMR) after hijacking patient data. Police could not trace the transaction due to Monero’s privacy features.
Part 2: The EU – Crypto’s Growing Role in Cybercrime
2.1 Cash: €166 Billion in Criminal Flows
Europol estimates 1% of EU GDP (€166 billion) circulates in suspicious transactions annually:
– Drug trafficking: €60 billion via cash, concentrated in ports like Rotterdam and Antwerp.
– Cash wages: €58 billion in unreported salaries across agriculture and hospitality.
Regional Divide: Eastern Europe relies on cash smuggling routes, while Western Europe increasingly adopts digital methods.
2.2 Cryptocurrency: €12.3 Billion Seized
In 2024, EU authorities confiscated €12.3 billion in crypto, a 180% increase since 2022:
– North Korean hackers: €1.3 billion stolen via DeFi protocols.
– Darknet markets: 32% of seizures (€3.9 billion) linked to platforms like AlphaBay 2.0.
Notable Trend: 70% of illegal crypto flows involved stablecoins (USDT, USDC) due to price stability.
Part 3: Comparative Analysis – NL vs. EU
| Indicator | Netherlands | EU |
|---|---|---|
| Total Volume | €13.04 billion | €175–200 billion |
| Cash Share | 99.7% | 94% |
| Crypto Share | 0.3% | 6% |
| Fastest Growth | Ransomware (+200%) | CEO Fraud (+80%) |
Part 4: Policy Implications – Ban vs. Regulation
4.1 Halsema’s Crypto Ban: Feasible?
– Technically impossible: Bitcoin’s decentralized network operates beyond government control. A ban would only shift usage abroad.
– Privacy coins: Even if Bitcoin were banned, Monero (XMR) and Zcash (ZEC) remain anonymous alternatives.
4.2 The EU Alternative: MiCA Regulation
Since December 2024, the Markets in Crypto-Assets Regulation (MiCA) enforces:
– Licensing: Crypto firms must identify customers (KYC).
– Transaction monitoring: Payments above €1,000 require screening.
– Stablecoins: Issuance limited to regulated entities.
Outcome: Post-MiCA, EU crypto crime decreased by 22%, though Eastern Europe remains a hotspot.
Part 5: Criticisms of Halsema’s Proposal
- Disproportionate focus: Only 0.3% of Dutch criminal payments use crypto.
- Cash Compensation blind spot: €3–5 billion in unreported wages remains unaddressed.
- Innovation stifling: A ban could hinder legitimate blockchain applications, like real estate tokenization.
MP Van der Staaij (ChristenUnie):
“We must invest in better detection, not unenforceable bans.”
Conclusion: A Differentiated Approach is Essential
While cryptocurrencies pose growing risks in cybercrime, cash remains the dominant tool for criminal payments (99.7% in NL, 94% in the EU). Instead of a crypto ban, a combination of measures is more effective:
– Cash Limits: €3,000 cap per transaction in the Netherlands (aligned with the EU’s €10,000 standard).
– Crypto Analysis Units: Expand blockchain expertise within police and tax authorities.
– Global Cooperation: Target bulletproof hosting providers and privacy coin developers.
Halsema’s proposal, while politically charged, lacks nuance/intelligence. The real challenge? Tackling anonymity in both crypto and cash.
Sources: Europol (2025), Chainalysis (2024), Ecorys (2021), WODC, Dutch FIU.