Belgium’s Financial Services and Markets Authority (FSMA) issued a statement this week that cryptocurrencies such as Bitcoin, Ether, and others do not constitute securities.
The FSMA’s statement comes amid a report published in July, with the most recent statement clarifying questions on how the nation’s finance regulations affect digital assets.
The FSMA’s “stepwise plan” aims to classify cryptocurrencies issued by individuals and entities as a security in a non-legally binding agreement.
#News 📰 | Kwalificatie van cryptoactiva als effecten, beleggingsinstrumenten of financiële instrumenten
— FSMA (@FSMA_info) November 25, 2022
➡️ https://t.co/j5UZXXx214#tcrypto #cryptoactiva #MiFID #mededeling pic.twitter.com/r9xa2ryjG0
It explained in the statement: “If there is no issuer, as in cases where instruments are created by a computer code and this is not done in execution of an agreement between issuer and investor (for example, Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Law and the MiFID rules of conduct do not apply.”
It added that cryptocurrency not categorised under the new stepwise plan regulations could potentially face further restrictions if companies use the assets as a medium of exchange.
It added: “Nevertheless, if the instruments have a payment or exchange function, other regulations may apply to the instruments or the persons who provide certain services relating to those instruments.”
The Belgian regulators also explained its plan was neutral to the blockchain and other cryptocurrency technologies, but rather their use in markets.
The news comes after the first draft of the report, issued in July this year, to address Belgian digital asset entities. The European Parliament is set to adopt its Market in Crypto Assets regulation (MiCA), with Belgium adopting its stepwise plan before EU legislation takes effect in 2024.
