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Bitcoin and Ether are not securities in Belgium, financial regulator clarifies – Regulation Bitcoin News
Cryptocurrencies such as bitcoin and ether cannot be classified as securities or investment instruments, according to a communication issued by the financial watchdog in Belgium. The authority has tried to clarify the matter, and points out that the digital coins may be subject to other rules.
FSMA: Securities laws do not apply to Bitcoin and other decentralized cryptocurrencies
In response to several requests for clarification from citizens and businesses, Belgium’s Financial Services and Markets Authority (FSMA) has explained why it believes bitcoin, ether and other similar cryptocurrencies cannot be considered securities or investment instruments.
According to the position published on Thursday, the country’s securities laws do not apply to such digital assets, which have no issuer and are created by a computer code as opposed to the execution of an agreement between an issuer and an investor.
However, the regulatory body pointed out that if these crypto-assets have a payment or exchange function, if they are fungible or fungible, other regulations may apply to them as well as to the persons providing certain related services.
The FSMA further noted that despite the lack of specific legislation, cryptocurrencies can be equated with securities if they are incorporated into financial instruments and have an issuer such as an individual or a legal entity.
To help interested parties who have sent more and more questions about the financial rules for cryptoassets, the authority has adopted a “phased plan” to offer a series of guidelines for their classification.
The Belgian financial watchdog emphasized that the plan is neutral in terms of technology. “The qualification as a security, financial instrument or investment instrument does not depend on the technology used,” it elaborated, adding that it is ready to update the plan to reflect regulatory changes in the future.
One such event could be the upcoming adoption of the EU framework for Markets in Crypto Assets (MiCA), which was agreed by European institutions and member states at the end of June. In July, the FSMA launched a consultation on the classification of cryptoassets. Earlier this year, the watchdog introduced registration requirements for crypto exchange and wallet service providers.
Do you expect authorities in other European jurisdictions to issue similar clarifications regarding the status of cryptocurrencies? Share your thoughts on the topic in the comments section below.
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