May 14, 2024
politics

Belgian Supervisory Authority proposes to regulate cryptocurrencies as securities

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Belgian Supervisory Authority proposes to regulate cryptocurrencies as securities

Financial Services AuthorityBelgian markets believes that issuers have a responsibility to know when cryptoassets are considered securities. Despite the fact that the law on cryptocurrencies is not yet in force in the EU.

FSMA announced that digital assets,that are limited in issue or that can be traded for a profit may be considered securities. Representatives of the regulator state that the European Union is now finalizing work on the Markets in Crypto-Assets Regulation (MiCA), but it is time for cryptocurrency issuers to know whether their assets are subject to securities laws:

"Waiting for an agreed Europeanapproach, FSMA wishes to provide clarity as to when crypto-assets may be considered securities, investment vehicles or financial instruments and may therefore be subject to issuance and/or business legislation.”

In the latest version of the MiCA bill, the authoritiesThe EU intends to oblige issuers to issue a White Paper for investors. Until the law comes into force (expected sometime in 2024), regulators will use a set of visual characteristics to guide enforcement.

EU Markets and Financial Directiveinstruments (MiFID) requires businesses to be clear when dealing with potential investors and avoid conflicts of interest. The document states that assets such as Bitcoin (BTC) and Ethereum (ETH) do not have an issuer because they are created by computer code.

Belgium increasingly tightens regulationcryptocurrency. In May, the Belgian Financial Services and Markets Authority (FSMA) introduced licensing for local companies providing cryptocurrency services to citizens. Now such companies are required to obtain a license to work with digital assets. The appeal states that the new regulation is being created to regulate the ever-growing crypto industry.

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