September 27, 2023

Belgian FSMA calls on government to develop cryptocurrency regulation

Belgian Office of Financial Services and Markets (FSMA) calls on government Develop regulation for the cryptocurrency industry as soon as possible.

During Senate Hearings FSMA ChairJean-Paul Servais turned to lawmakers with a proposal to create "a legal framework for the sale, purchase and use of virtual currencies and all financial products associated with them."

Referring to countries such as Thailand, China,Argentina, Ecuador, Bolivia, and Algeria, in which cryptocurrencies are either regulated or banned, he pointed out the regulatory inefficiency on the part of the Belgian authorities of the industry, which is growing at a significant pace.

He referred to conflicts in warnings,issued by the market regulator and the National Bank of Belgium in response to the promotion of the Bitcoin business. The FSMA Chairman noted that more than a thousand crypto assets are currently circulating on the Belgian cryptocurrency market, which in total are valued at more than $ 320 billion. In the absence of regulation, fraudulent activities using these currencies may affect investors.

“Due to the impossibility of tracking, bitcoin andother virtual currencies are very popular in the context of cybercrime: they are common on the darknet because they allow you to commit crimes without leaving any traces, ”Serve quoted the official resolution of the FSMA.

He also mentioned a growing amountcrypto machines around the world and said that several such devices are also located in Belgium. The resolution provides warnings to economists and Nobel laureates related to the growth of the cryptocurrency economy. The document mentions the Royal Decree of 2014, which prohibits offering retail investors any professional products based on virtual currencies.

“It is urgent to create a legalthe basis for this virtual money and related financial products, in particular, to protect consumers and counteract the use of crypto assets for criminal purposes, ”the resolution says.

Recall that the FSMA of Belgium has for several years maintained a list of fraudulent cryptocurrency projects. Last year, this list included 120 sites.