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HomeAltcoinsBelgium Claims Bitcoin, Ethereum, And Other Decentralised Coins Are Not Securities

Belgium Claims Bitcoin, Ethereum, And Other Decentralised Coins Are Not Securities

Belgium’s financial authority has declared that Bitcoin (BTC), Ether (ETH), and other cryptocurrencies generated exclusively by computer code are not securities. Belgium’s Financial Services and Markets Authority (FSMA) provided the reason in a November 22 report, a proposal for which was released for comment in July 2022.

According to the FSMA, the clarification comes in response to an increase in requests for clarification on how Belgium’s current financial rules and regulations relate to digital assets. While not legally enforceable under Belgian or European Union law, the FSMA claimed that cryptocurrencies would be classified as securities if issued by a person or company following its “stepwise approach.”

The Belgian regulatory agency said that cryptocurrencies that are not classified as securities may nonetheless be subject to other restrictions if used as a means of exchange by a corporation. FSMA also said that its step-by-step plan is neutral when it comes to technology. This means that it doesn’t matter if digital assets exist and can be used on a blockchain or through other traditional channels.

The FSMA originally produced the paper in July 2022 to answer commonly asked questions by Belgian-based digital asset issuers, offerors, and service providers. The progressive approach, according to FSMA, will serve as a guideline until the European Parliament’s Markets in Crypto Assets Regulation (MiCA) is implemented, which is slated to take effect in early 2024.

Belgium’s clear principles contrast with the Securities and Exchange Commission’s (SEC) “regulation by enforcement” strategy, which is presently competing for regulatory authority over digital assets with the Commodity Futures Trading Commission (CFTC). While SEC Chairman Gary Gensler has always viewed Bitcoin as a commodity, he has lately claimed that post-Merge ETH and other staked currencies may qualify as securities under the Howey test.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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