Crypto assets such as Bitcoin (BTC) and Ethereum (ETH) are not considered by the Belgian financial regulator.
The Financial Services and Markets Authority (FSMA) issued a statement saying that cryptocurrencies issued solely by computer code do not constitute securities. The regulator’s response comes after receiving an increasing number of questions about the application of financial rules to the asset class.
Earn for BTC and ETH
With a prominent financial regulator trying to address one of the major gray areas in the sector, the latest clarification from the FSMA is seen as a win for society. The bottom line is that the crypto-origin is not security if there is no issuer.
“If there is no issuer, such as in cases where the instruments are generated by means of computer code and are not done in connection with an agreement between the issuer and the investor (eg Bitcoin or Ether), then in principle the Prospectus Act, the Prospectus Act and MiFID Code of conduct does not apply.
The authority also stated that crypto assets classified as non-securities may be subject to other laws and regulations. But this only applies if they have a payment or exchange function, which means that the company uses the assets in question as an “exchange”.
The FSMA considers that Belgium’s “phase” plan is not technology-dependent and that qualification as a financial instrument, financial instrument or investment vehicle is not technology-dependent. The regulator also said it would update the plan as necessary.
According to the regulator, the phased plan will serve as a guideline until the adoption of the European Parliament Regulation on Markets in Crypto Assets (MiCA), which is scheduled for early 2024.
precedent for the United States?
Belgium’s statement could set a regulatory precedent worldwide, which stands in stark contrast to the views of US Securities Commission Chairman Gary Gensler, as Ripple Labs continues to battle the securities regulator over the status of XRP.
The agency had previously claimed that 99% of cryptocurrency trading is likely security trading and is subject to its regulations.
In addition, Ethereum’s move to proof-of-stake has put the industry back in the SEC’s crosshairs after Gensler mentioned that PoS-based currencies could be subject to securities laws.
Beyond Bitcoin, Ethereum Not Securities: Belgian FSMA Shows First On CryptoPotato.