FSMA in Belgium Mandates Crypto Firms to Register in May

FSMA in Belgium Mandates Crypto Firms to Register in May
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Economy

Belgium’s FSMA Mandates Crypto Firms to Register in May

According to Belgium’s FSMA, crypto exchange businesses or custodial wallets will need to register in advance to operate in the region.

05/02/2022

As cryptocurrency growth continues high, several governments have begun to investigate regulatory frameworks. In addition, Belgian officials have enacted a new regulation for persons and businesses seeking to provide exchange services between virtual currencies and legal currencies, as well as safekeeping wallet services, based on the report.

To operate in Belgium, cryptocurrency exchanges and also custodial wallet services will need to register with the Financial Services and Markets Authority (FSMA).

Financial Services and Markets Authority’s Crypto Rule

Belgium’s financial regulators stated that legitimate persons and businesses wishing to provide crypto exchange services or custodial wallets in the nation must register first.

Existing virtual currency service providers, on the other hand, are required by law to notify the FSMA of the nature of their business before July 1st. The establishments have four extra months to apply for registration, with a September 1st deadline.

In addition, in order to obtain a license as a virtual asset service provider (VASP), an entity must meet seven criteria, including having a specific corporate form and a minimum capital of EUR 50, 000 ($52, 718 approx.). Service providers must also establish a central administration and registered office in Belgium, as well as contribute to the FSMA’s operating costs.

The financial regulator also stated that it may request extra information from service providers in order to review their applications, which generally takes three months. The FSMA will then send a registered letter notifying the public of its decision.

Belgium was skeptical of the cryptocurrency industry

Previously, Belgium was skeptical of the cryptocurrency industry. However, as BTC reached new heights, the country has seen an increase in the number of Bitcoin ATMs popping up in recent months.

Brussels member of parliament Christophe De Beukelaer recently became the first politician in Europe to convert his entire salary of EUR 5,500 (5,799 approx.) to Bitcoin, Wozinga Crypto News. As previously stated, he expects the move to pique the interest of other regional politicians in the maverick technology.

By Elah Mae Ariate Wozinga Staff

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