Authorities in Belgium have forced providers of some crypto exchange and wallet services to register with the country’s financial watchdog. Selected platforms that do not comply with the new regulations will face fines, among other sanctions, including being banned from carrying out their respective activities.
Financial Regulator Imposes Mandatory Registration for Cryptocurrency Exchange Service Providers in Belgium
As of May 1, 2022, any legal entity established and operating in Belgium that wishes to provide exchange services between “virtual currencies and legal currencies” must register with the Financial Services and Markets Authority (FSMA), the country’s financial regulator. The same applies to companies that offer custodial portfolio services, the agency announced.
Cryptocurrency platforms included in these two categories, which had been operating in Belgium before the specified date, must notify the FSMA of their activities by July 1, 2022 and apply for registration by the September 1 deadline. said the watchdog. They will be granted a “provisional authorization” that will allow them to continue their operations until the FSMA reviews their registration applications.
The affected service providers are Belgian or European companies. Registration is subject to a minimum capital requirement of €50,000 ($53,000), a FAQ section in the details of the authority’s website. The FSMA also wants to know the identities of the shareholders and the people who control the platforms who must have the necessary management qualities.
The FSMA states that foreign exchange service providers are understood as entities that carry out purchase or sale operations with their own capital. This is when the provider acts as the counterparty to a deal, just like traditional foreign exchange offices.
Platforms that serve as intermediaries in transactions between a client and a third party are not subject to the new rules. However, ATM operators for the exchange of fiat cryptocurrencies will be considered exchange service providers for the purposes of the new requirements.
The regulator also defines custody wallet services as services for the custody of private cryptographic keys on behalf of clients for the purpose of holding, storing and transferring virtual currencies. Persons offering clients such services will be viewed as providers of portfolio custody services that are required to register with FSMA.
Do you think most crypto service providers in Belgium will be able to meet the new requirements and register with the country’s financial watchdog? Tell us in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerNote: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.