Belgium Regulators: BTC, ETH & Other Decentralized Coins Are Not Securities.
Belgium’s Financial Services and Markets Authority surprised many in the crypto industry on Thursday when they announced their stance on cryptocurrencies like Bitcoin and Ethereum, which for the most part completely contrast the views of US regulators.
BTC & ETH Are Not Securities
In a Nov. 22 report, Belgium’s Financial Services and Markets Authority (FSMA) addressed that it was receiving an increasing amount of questions about crypto regulations and hope to address when digital assets like cryptocurrencies can be classified as securities.
The FSMA explains that cryptocurrencies would only be classed as a security if it was issued by an individual or entity, whereas crypto like Bitcoin and Ethereum that has no official issuer, they would technically not classify as a security.
“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.” The FSMA wrote on their report.
Subject To Other Rules
Despite not being classified as securities, the FSMA made it clear that cryptocurrencies will still have to face other laws and regulations. For example, crypto companies will still need to apply anti-money laundering procedures, the guidance said.
The FSMA also made it clear that cryptocurrencies that cryptocurrencies which are not categorized as securities will also still have to face other regulations if they have a payment or exchange function.
“Nevertheless, if the instruments have a payment or exchange function, other regulations may apply to the instruments or the persons who provide certain services relating to those instruments.” The FSMA wrote.
In the next coming years, a new EU law called the Markets in Crypto Assets regulation (MiCA) will also be taking effect. This law will require new crypto offerings to create white papers similar to that of a stock prospectus.