Bitcoin and Ether are not securities in Belgium, financial regulator clarifies – Regulation Bitcoin News

Cryptocurrencies like bitcoin and ether cannot be classified as transferable securities or investment instruments, according to a communication issued by the financial watchdog in Belgium. The authority attempted to clarify the issue, noting that digital coins may be subject to other regulations.

FSMA: Securities laws do not apply to Bitcoin and other decentralized cryptocurrencies

In response to multiple requests for clarification from citizens and businesses, the Belgian Financial Services and Markets Authority (FSMA) explained why it believes that bitcoin, ether and other similar cryptocurrencies cannot be considered as transferable securities or investment instruments.

According to its position published Thursday, the country’s securities laws do not apply to these digital assets, which have no issuer and are created by computer code as opposed to the execution of an agreement between an issuer and an investor.

However, the regulator pointed out that if these crypto-assets have a payment or exchange function, if they are tradable or fungible, other regulations may apply to them and to people who provide certain services. related.

The FSMA further pointed out that despite the lack of specific legislation, cryptocurrencies can be assimilated to transferable securities if they are incorporated into financial instruments and have an issuer such as a natural or legal person.

Seeking to provide assistance to interested parties, who are increasingly sending in questions about financial rules regarding crypto assets, the authority has adopted a “step plan” to come up with a series of guidelines for their classification.

The Belgian financial watchdog stressed that the plan is technology-neutral. “Qualification as a security, financial instrument or investment instrument does not depend on the technology used,” he said, adding that he is ready to update the plan to reflect regulatory changes to come.

One of these events could be the upcoming adoption of the European Framework for Crypto Asset Markets (MiCA), which was approved by European institutions and member states at the end of June. In July, the FSMA launched a consultation on the classification of crypto assets. Earlier this year, the watchdog introduced registration requirements for crypto exchange and wallet service providers.

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Do you expect authorities in other European jurisdictions to issue similar clarifications regarding the status of cryptocurrencies? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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