Bitcoin & Ethereum like crypto assets are not securities: Belgium

The financial regulatory body of Belgium shared its proper opinion on the categorization of digital assets as security or non-security, in response to many questions which were seeking to get clarity to adopt proper regulatory guidance in the Crypto sector. 

Belgium’s Financial Services and Markets Authority (FSMA) in a November 22 report, a draft of which was opened for comment in July 2022. In the draft, FSMA confirmed that any digital assets which were not issued by any individual or an entity and fully based on computer code will be treated as non security assets. 

“If there is no issuer, as in cases where instruments are created by a computer code and this is not done in execution of an agreement between issuer and investor (for example, Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Law and the MiFID rules of conduct do not apply.”

Perhaps, Belgium’s financial body answered the categorization ideology of the crypto assets but at the same time confirmed that other regulatory rules & laws may apply over the use of crypto assets by any company/person/services. In particular, they targeted the crypto assets use case, which are providing payment services & as an services exchange tool.

This draft was prepared in July 2022 in response to the questions asked by crypto industry players including offerers and service providers of digital assets. 

This drafted information on the crypto assets & use case is showing that Belgium is open to the adoption of cryptocurrencies in the payment system but under a fully regulated environment. This stance of Belgium’s financial body is also giving clarity to all the types of crypto companies that are providing crypto-supported payment services, like Ripple Labs. 

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