Crypto assets without issuers, such as Bitcoin (BTC) and Ethereum (ETH), are not securities, according to Belgium’s Financial Services and Markets Authority.
The regulation focuses on whether the transferable asset has an issuer, according to the regulator. The Prospectus Regulation, the Prospectus Law, and the MiFID rules of conduct will not apply if it does not qualify as a security or investment instrument.
How do Belgian authorities feel about Bitcoin?
The Belgian regulatory system is technologically neutral, according to FSMA. Whether an asset is classified as a financial instrument or security shouldn’t depend on whether it uses a blockchain or a conventional method.
According to the regulations, transferable instruments with an issuer are likely to be considered securities, as outlined in a July consultation. Accordingly, they are required to comply with an EU law called MiFID, which imposes transparency requirements on financiers. Creating an honest prospectus of information for possible investors is crucial to avoiding conflicts of interest. However, Bitcoin (BTC) doesn’t count because it doesn’t have an issuer.
Despite the fact that certain regulations do not apply to crypto firms, anti-money laundering measures must nonetheless be followed. Belgium also passed a law in 2014 prohibiting professionals from offering crypto-based financial products to retail customers.