Bitcoin, Ethereum are not Securities: Belgian Regulator

The FSMA said that it was receiving a lot of questions regarding the regulatory treatment of cryptocurrencies. The body decided to address some of the confusion, especially those related to whether cryptos are securities.

How do Belgian authorities feel about Bitcoin?

According to FSMA, Belgian regulation is technologically neutral.  Whether an asset uses a blockchain or a more conventional method, it shouldn’t affect whether it is classified as a financial instrument or security.

The regulations stated that transferable instruments with an issuer are likely to be considered securities, much like how they were outlined in a July consultation. This implies that they must adhere to EU law known as MiFID, which requires financiers to be transparent. To avoid conflicts of interest, they must create an honest prospectus of information for possible investors. However, since Bitcoin (BTC) doesn’t have an issuer, it doesn’t count.

The guidance stated that even if certain regulations do not apply, crypto firms must nonetheless follow anti-money laundering measures. Also, in 2014 Belgium passed a law that made it illegal for professionals to offer crypto-based financial products to retail customers. Furthermore, the EU is currently awaiting the implementation of its MiCA (Markets in Crypto Assets regulation) law.

At press time, Bitcoin (BTC) was trading at $16,167.86, down by 2.4% in the last 24 hours. While Ethereum (ETH) was trading at $1,169.70, down by 4% in the last 24 hours.