Belgia’s views on what conditions must be met for a crypto asset to be classed as a security are in contrast to the United States’ views.
Belgium’s financial regulatory authority has confirmed that Bitcoin, Ether and other cryptocurrencies that are issued solely by computer code aren’t securities.
The clarification came from Belgium’s Monetary Administrations and Markets Authority. A draft of the report was open for input in July. 2022.
According to the FSMA, there has been an increase in demands for answers as to how Belgium’s existing financial laws and regulations apply to digital assets.
The FSMA stated that cryptocurrencies would be classified as a security if they were issued by an individual or entity.
If there is no issuer, as in cases where instruments are created by a computer code and this isn’t executed in execution of an agreement between the issuer and investor (for example Bitcoin or Ether), the Prospectus Regulation, the Prospectus Law and the MiFID rules of conduct don’t apply.
The Belgian regulatory body noted that if a company uses the digital asset as a medium of exchange, it may still be subject to other regulations.
Other regulations may apply to the persons who provide certain services relating to the instruments if they have a payment or exchange function.
FSMA said that its stepwise plan is neutral to the technology, suggesting that it is irrelevant whether digital assets exist or not.
The report was first drafted by the FSMA.
Belgian-based issuers, offerers and service providers of digital assets frequently ask questions.
FSMA stated that the stepwise plan would serve as a guideline until the European Parliament adopts MiCA, which is expected to take effect at the start of 2024.
Belgia’s clear guidelines are in contrast to the U.S, SEC is currently vying for digital asset regulatory control with the U.S Commodity Futures Trading Commission (CFTC).
While Gary Gensler has long considered BTC to be a commodity, he has recently argued that post-Merge ETH and other staked coins may be a security under the Howey test. Belgium hasn’t been a big adopter of digital assets yet. Residents in the European country have access to 10 crypto exchanges, according to Bitrawr.
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