WILLEMSTAD - Luigi Faneyte, a prominent financial expert, has raised serious concerns about proposed legislation that could have far-reaching consequences for Curaçao and the Kingdom of the Netherlands. In a letter addressed to Charetti America-Francisca, the President of Parliament, Faneyte urged lawmakers to postpone a vote on the National Ordinance on Games of Chance (LOK), citing potential financial and reputational risks tied to cryptocurrency transactions.
Faneyte revealed that the Gaming Control Board (GCB), under the supervision of Finance Minister Javier Silvania, has been accepting payments in cryptocurrency for gaming licenses. These payments, reportedly processed using stablecoins, are in violation of existing regulations and pose significant risks to the integrity of Curaçao’s financial systems. According to Faneyte, the move not only endangers Curaçao’s reputation but also has implications for the broader Kingdom of the Netherlands.
“A Wild West” of Cryptocurrency Transactions
Faneyte’s letter details a troubling lack of oversight in the use of stablecoins, which he describes as being part of a financial "Wild West," echoing sentiments expressed by Minister Silvania’s advisor, Galea. Stablecoins, despite being marketed as safe digital currencies, lack the rigorous oversight typically associated with traditional banking systems.
Invoices issued by the GCB reportedly omit any reference to cryptocurrency payments. Instead, separate emails containing links for crypto payments are sent to recipients. Faneyte highlighted that the payments are processed through an Electronic Money Institute in the Czech Republic, rather than a conventional banking institution like MCB. This method, he warns, increases the risk of fraud and misuse.
Caution from Central Banks
Faneyte underscored that both the Central Bank of Curaçao and Sint Maarten and the Dutch Central Bank have expressed strong reservations about the use of cryptocurrencies in government transactions. These payments are difficult to trace, raising concerns about their legality and security.
Complaints have also emerged from businesses alleging that their cryptocurrency payments failed to reach the intended recipient. Faneyte noted that poor payment instructions have resulted in significant losses, which could ultimately become the government’s liability. These issues, he claims, have been kept from Parliament.
A Call for Responsibility
Faneyte called on Parliament to delay the vote on the LOK, emphasizing the need for further discussions with central banks and the parliaments of the Netherlands and Sint Maarten. He warned that approving the legislation in its current form could result in irreversible damage to Curaçao’s reputation and its relationship within the Kingdom.
“This is not just a Curaçao issue; it’s a Kingdom matter,” Faneyte stated, urging lawmakers to consider the broader implications of their decision.
Faneyte concluded by stressing the gravity of the situation: "Accepting cryptocurrency payments in this manner is a criminal offense. If the LOK is adopted today, these errors cannot be undone, potentially causing significant harm to Kingdom relations and Curaçao’s reputation."