Belgium regulates cryptocurrencies

In a recent statement, the Financial Services and Markets Authority of Belgium (FSMA) outlined its position on the ownership of cryptocurrencies. Cryptocurrency tokens such as Bitcoin and Ethereum are not regarded as having an adequate level of security, according to the nation's fin


Regulations that are made more clear

The Belgian government contends that the regulation of cryptocurrencies as safety certificates is impossible due to the fact that cryptocurrencies are more similar to goods than they are to securities. According to the most recent position, which is significant, the authorities do not want the Financial Services Modernization Act (FSMA) to regularize cryptocurrency.

Over the course of the past few months, the manner in which the financial rules of Belgium relate to the ownership of cryptocurrencies has come under close examination. On November 22, the FSMA issued a statement in which it outlined its defense. The chance for members of the general public to comment on the report was open during the month of July.

The most recent categorization that FSMA has provided is a positive step forward in the development of the system, and those individuals who had been waiting for clarification from the regulator should take note of this.

According to the FSMA, the only way it will consider restricting cryptocurrencies as safeties is if they are issued by companies or individuals.

In situations where there are no institutions, the devices are instead produced by computing device algorithms, and there is no workable contract between the trader and the establishment, such as with BTC and ETH, the current securities laws cannot be applied.

The method for putting various regulatory tools to use

The financial regulator, on the other hand, issued a warning that additional regulations might be applicable to the instruments or to those who offer works associated with them if the instruments were used for payment or other exchange functions.

In contrast to the system used in the United States, the FSMA asserted that its strategy is unaffected by technological advancements. Because of this, it makes no difference whether the crypto-based possessions are real and backed by a blockchain or any other method traditionally used.

Up until that point, the plan will be carried out in accordance with the FSMA in its entirety. The regulatory authorities in Belgium and the United States hold very different views, and the gap between them is significant. Instead of taking proactive measures, like Belgium does, the Securities and Exchange Commission in the United States allows the cryptocurrency space to self-regulate.

This results in regulations that are inconsistent and contradictory, which makes the conception more difficult and gives stakeholders reason to be concerned.

Orizu Chisimdi

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