Bitcoin & Ethereum Like Crypto Assets Are Not Securities: Belgium
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The Belgian financial regulatory body shared its due opinion on the classification of digital assets as safe or non-safe, in response to many questions that sought to clarify the issue of proper regulation in the crypto sector.
The Belgian Financial Services and Markets Authority (FSMA) issued a report on November 22, the draft of which was opened for comment in July 2022. In the draft, FSMA confirmed that all digital assets not issued by an individual or entity and based entirely on computer code will be treated as non-security assets.
“If there is no issuer, as in cases where the instruments are created by computer code, and this is not done in the execution of the agreement between the issuer and the investor (e.g. Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Act and the MiFID procedural rules do not apply.”
Perhaps the Belgian financial body responded to the ideology of classifying cryptoassets, but at the same time confirmed that other regulatory rules and laws may apply to the use of cryptoassets by any company/person/service. In particular, they focused on the use case of crypto assets that provide payment services and as a service exchange tool.
This draft was prepared in July 2022 in response to questions from crypto industry players, including digital asset providers and service providers.
This cryptocurrency and use case data shows that Belgium is open to the adoption of cryptocurrencies in the payment system, but in a fully regulated environment. This attitude of the Belgian financial institution also clarifies all types of crypto companies that offer crypto-backed payment services, such as Ripple Labs.
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