As per the new registration rules of the Financial Services and Markets Authority (FSMA) in Belgium, crypto exchanges and wallet providers that do not comply with the new rules may face jail sentences of up to one year with a penalty of up to EUR 80000. The registration with the FSMA is now mandatory.
The new FSMA punishment rules in Belgium
The FSMA will maintain separate registration requirements for crypto exchanges and wallet service providers. Companies discovered operating without registration may face jail sentences of from one month up to one year. The fine will also range from EUR 400 to EUR 80000. The new Belgian rules are applicable only to crypto exchange and wallet firms that have a physical facility or other presence in Belgium. The companies providing overseas services to Belgians do not have the necessity to comply with the new rules.
Those companies which want to register with FSMA must satisfy certain requirements. Some of these are qualifications of senior management and their citizenship, a minimum capital requirement of EUR 50,000 etc. The companies must also comply with anti-money laundering practices.
FSMA definition for Crypto exchange and wallet service providers
A wallet provider is an entity that provides services to secure private cryptographic keys on behalf of its customers in order to hold, store, and exchange virtual currency. An exchange is defined as services consisting of purchase and sale transactions, exchanging virtual currency for fiat currency, or vice versa.
