- The FSMA has said that it has received several inquiries on the regulatory status.
- Bitcoin (BTC) is disregarded as security since there is no central authority behind it.
Bitcoin (BTC) and Ethereum (ETH) are not considered securities, according to the Financial Services and Markets Authority (FSMA) in Belgium. Regulatory organizations all over the globe are attempting to define the emergent asset class. But thus yet, only a few of them have been successful. It’s worth noting that the US Securities and Exchange Commission (SEC) is engaged in a similar legal struggle with Ripple.
The FSMA has said that it has received several inquiries on the regulatory status of cryptocurrencies. The organization has chosen to clarify various points, notably the question of whether or not cryptocurrencies are securities.
No Central Authority
Moreover, the FSMA states that Belgian law does not favor any particular kind of technology. Classification as a financial instrument or security should not depend on whether or not an asset employs blockchain technology or a more traditional way.
The rules reiterated the July consultation’s stance that issuer-backed transferable instruments are likely to be classified as securities. This indicates that they are subject to the EU rule known as MiFID. Which mandates openness on the part of financial institutions. Potential investors need to be given accurate information in a transparent prospectus, yet doing so would create a conflict of interest. Bitcoin (BTC), on the other hand, is disregarded since there is no central authority behind it.
According to the recommendations, crypto companies should nevertheless undertake anti-money laundering precautions even if some legislation does not apply to them. Not only that, but in 2014 Belgium implemented a regulation that made it unlawful for experts to sell cryptocurrency-based financial products to the general public. Additionally, the European Union is waiting for its MiCA (Markets in Crypto Assets regulation) legislation to go into effect before it can begin regulating the crypto asset market.
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