Belgian financial authorities say bitcoin and ether are not securities or investment products.
The authority has made an effort to be clear, emphasising the possibility that additional laws could apply to digital currency.
The authority has made an effort to provide clarification, emphasising that additional laws may apply to digital currency.
Belgium's Financial Services and Markets Authority (FSMA) has clarified why it thinks bitcoin, ether, and other such cryptocurrencies cannot be regarded as securities or investment instruments in response to numerous inquiries from individuals and organisations.
Such digital assets, which have no issuer and are produced by computer code as opposed to the execution of a contract between an issuer and an investor, are not covered by the nation's securities laws, according to its position, which was published on Thursday.
The regulatory authority did note that additional regulations might apply to these crypto assets as well as the individuals who are offering specific connected services if they have a payment or exchange function, if they are exchangeable, or if they are fungible.
Despite the absence of particular regulation, the FSMA noted that cryptocurrencies can be compared to securities if they are included in financial instruments and have an issuer that is either a natural person or a legal company.
The authority has devised a "stepwise approach" to give a series of recommendations for classifying crypto assets in an effort to assist interested parties who have been receiving more and more inquiries regarding the financial rules governing these assets.
The strategy is technology-neutral, according to the Belgian financial authority. It also clarified, adding that it is prepared to revise the plan in order to take into account future legislative developments, "The qualification as a security, financial instrument, or investment instrument does not depend on the technology that is being employed.
The imminent adoption of the EU's Markets in Crypto Assets (MiCA) framework, which was approved by European institutions and member states at the end of June, may be one such occasion. The FSMA started a consultation on the categorization of crypto assets in July. The watchdog started requiring providers of cryptocurrency exchange and wallet services to register earlier this year.
