The Belgian Financial Services and Markets Authority issued a statement on Thursday regarding cryptocurrencies and their status as securities. Here are the details…
Statement for cryptocurrencies from Belgium’s financial regulator
Belgium’s Financial Services and Markets Authority made a statement on cryptocurrencies the other day. As is known, there are comments that some major cryptocurrencies are securities. However, the Belgian FSMA said that unregulated cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are not securities. The regulator noted that it is receiving an increasing number of questions about the regulatory treatment of crypto. He said he hopes to address the gray areas that come up most often, including when cryptocurrencies can be classified as securities.
As we reported on Kriptokoin.com, the US Securities and Exchange Commission (SEC) said that Ripple Labs should register the cryptocurrency XRP. Namely, in jurisdictions like the US, contentions over when to consider crypto as a security have led to court proceedings. The FSMA added that its rule in Belgium is “technology neutral.” He suggested that classification as a financial instrument or security should not depend on whether an asset uses a blockchain or something more traditional.
Bitcoin is not considered a security
The rules, which largely reflect what was stated in the consultation in July, say that instruments transferable with an issuer would likely constitute a security. This means they must prepare an honest information prospectus for potential investors and implement an EU law known as MiFID, which requires financiers to be clear and avoid conflicts of interest. However, cryptocurrencies like Bitcoin are not considered securities as they have no issuers.
The guide said that even if these rules do not apply, there are existing requirements for crypto companies to implement anti-money laundering procedures. A new EU law known as the Crypto Asset Markets regulation (MiCA) will also come into effect in the coming years. It will require new crypto offerings to produce a whitepaper similar to a stock prospectus. Belgian rules passed in 2014 make it illegal for professionals to distribute crypto-based financial products to individual customers.
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