Crypto exchange businesses and custodial wallets in Belgium must register in advance, according to the country’s FSMA.
As the usage of cryptocurrencies continues to rise, some nations have begun to look into possible legal frameworks. Regulation in Belgium has added to this trend by enacting new legislation for people and organisations interested in offering exchange services between virtual currency and legal tender or custodian wallets.
The Financial Services and Markets Authority (FSMA) has issued a new regulation requiring Belgian cryptocurrency exchanges and custodial wallet services to register with the agency.
Cryptocurrency exchange services and wallet providers in Belgium will be required to register with the country’s financial authorities, according to a statement.
Existing virtual currency service providers, on the other hand, are required under the anti-money laundering statute to inform the FSMA of their activities before July 1st. The deadline for submitting registration applications has been extended by four months, until September 1st.
In addition, seven criteria must be met in order for an entity to be licenced as a virtual asset service provider (VASP), including having a particular corporate form and a minimum capital of EUR 50,000 ($52,718 approximately). In addition, service providers must establish a central administration and registered office in Belgium and contribute to the FSMA’s operational expenses.
Further information may be requested from service providers by the financial authority in order to evaluate their applications, which may take up to three months. The FSMA will next send a registered letter notifying the public of its decision.
Stance in crypto
Before, Belgium was sceptical about cryptocurrencies. However, as the value of BTC has risen, more and more Bitcoin ATMs have appeared around the nation.
Christophe De Beukelaer, a Belgian politician, just became the first in Europe to convert his whole EUR 5,500 salary (about EUR 5,799) to Bitcoin. As previously reported, he hopes that the action would inspire other officials in the area to take an interest in the maverick technology. Asked about the acceptance of cryptocurrency, the politician replied:
Ignoring this new reality is no longer an option. As automobiles and light bulbs come, it’s a little like holding to a carriage or a candle. “The rate of adoption is likely to be exponential.”
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