Dutch central bank, regulator call for legal change to keep up in tokenization race - Ledger Insights

The Dutch central bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) have jointly called for changes to the legal framework governing tokenization, warning that existing rules may leave the country trailing in the development of tokenized financial markets.

Tokenization refers to representing traditional assets — such as bonds, fund units, or deposits — as digital tokens on a distributed ledger. Proponents argue this can make issuance, trading, and settlement faster and more transparent. However, the two regulators suggest current legislation was not designed with such structures in mind, creating legal uncertainty that could slow adoption.

For market participants, the intervention signals that regulatory clarity, not technology, may be the key variable shaping how quickly tokenized assets move into mainstream finance. The outcome matters beyond the Netherlands: if national regulators push for legal reform, it could influence broader European discussions on how tokenized instruments are supervised. What to watch is whether lawmakers take up the call, and how any changes interact with wider EU-level rules already under development.