Bitcoin, Ether Are Not Securities, Says Belgian Financial Regulator
Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), has clarified its position on the status of crypto currencies such as Bitcoin and Ether, saying that crypto assets without an issuer are issued only through computer code, they do not include securities. The Belgian government’s position is that cryptocurrencies are very similar to assets, so they should not be subject to the same regulations as securities. The clarification comes amid increasing demands for answers to how Belgium’s existing financial laws and regulations apply to digital assets, according to FSMA.
“If there is no issuer, such as when instruments are created by computer code and this is not done in the execution of an agreement between the issuer and the investor (for example, Bitcoin or Ether), then by law the Prospectus Regulation, the Prospectus. The law and the MiFID rules of conduct do not apply,” FSMA reasoned. in the report released on November 22.
In addition, the Authority also stated, “However, if the instruments have a payment or exchange function, other rules may apply to the instruments or persons who provide certain services related to those instruments.”
In addition, FSMA emphasized that their leading system is technology-agnostic, meaning that it makes no difference whether digital assets exist and are backed by blockchain or traditional means.
FSMA first developed this report in July 2022 to answer frequently asked questions from Belgian digital goods issuers and service providers.
The Europeans Markets in Crypto Assets Regulation (MiCA) is expected to come into force in early 2024, and FSMA said that this slow process will serve as a guideline until then.
The decision provides much-needed guidance on how digital assets will be treated under Belgian law. It is hoped that this decision will pave the way for more clarity and certainty in other areas when it comes to the regulated management of digital assets.