Wilbur Kwok
New member
According to the Financial Services and Market Authority (FSMA) of Belgium, cryptocurrencies like BTC and ETH that have no issuers are not securities. This claim surprised people because several nations worldwide had made the opposite claim.
Cryptocurrencies are comparable to commodities, according to the FSMA. So, cryptos shouldn't be subject to security laws. This most recent statement is significant since it suggests that FSMA won't be regulating cryptocurrency. Which government agency will oversee cryptocurrency regulation is not yet clear. However, this can be a fantastic chance for individuals to start using cryptocurrency in Belgium. The declaration makes it clear that:
"Theoretically, the Prospectus Regulation, Prospectus Law, and MiFID norms of conduct do not apply if there is no issuer, such as when instruments are formed as computer code and this is not done in execution of an agreement between the issuer and investor (For example, Bitcoin or Ether)."
Although the Financial Services and Markets Authority (FSMA) does not see cryptocurrencies as securities, it will not be easy for businesses to use them. They underline that a company will be subject to more rules if it uses cryptocurrency as payment.
"However, further limits may apply to the instruments or the individual who performs services in connection with such instruments if the instruments have a payment or exchange function."
FSMA's current stance on the criteria for classifying cryptocurrency as securities conflicts with that of the US Securities Exchange Commission (SEC). In the United States, the fiasco of defining cryptocurrency assets as securities has been going on since 2020. The legal battle between the SEC and XRP is among the greatest examples. Cryptocurrency meets the Howey Test requirements to be considered a security, according to SEC Chairman Gary Gensler.
Cryptocurrencies are comparable to commodities, according to the FSMA. So, cryptos shouldn't be subject to security laws. This most recent statement is significant since it suggests that FSMA won't be regulating cryptocurrency. Which government agency will oversee cryptocurrency regulation is not yet clear. However, this can be a fantastic chance for individuals to start using cryptocurrency in Belgium. The declaration makes it clear that:
"Theoretically, the Prospectus Regulation, Prospectus Law, and MiFID norms of conduct do not apply if there is no issuer, such as when instruments are formed as computer code and this is not done in execution of an agreement between the issuer and investor (For example, Bitcoin or Ether)."
Although the Financial Services and Markets Authority (FSMA) does not see cryptocurrencies as securities, it will not be easy for businesses to use them. They underline that a company will be subject to more rules if it uses cryptocurrency as payment.
"However, further limits may apply to the instruments or the individual who performs services in connection with such instruments if the instruments have a payment or exchange function."
FSMA's current stance on the criteria for classifying cryptocurrency as securities conflicts with that of the US Securities Exchange Commission (SEC). In the United States, the fiasco of defining cryptocurrency assets as securities has been going on since 2020. The legal battle between the SEC and XRP is among the greatest examples. Cryptocurrency meets the Howey Test requirements to be considered a security, according to SEC Chairman Gary Gensler.
