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Bitcoin (BTC), Ether (ETH), and other cryptocurrencies that are only issued by computer code do not qualify as securities, according to Belgium's financial regulatory authorities.
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The Financial Services and Markets Authority (FSMA) of Belgium provided clarification on November 22 after releasing a draught for feedback in July 2022.
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The clarification follows a rise in inquiries about how current financial laws and regulations in Belgium relate to digital assets, according to the FSMA.
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Despite not being enforceable by Belgian or EU law, the FSMA declared that under its "phased strategy," cryptocurrencies will be categorised as securities if issued by a person or entity:
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A company that uses digital assets as a medium of exchange may still be subject to additional regulations even if it is not considered to be a security, according to the Belgian regulatory body:
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Additionally, the FSMA stated that its phase-out strategy is unaffected by technology, implying that it is irrelevant whether or not digital assets exist and are made possible by blockchain.
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The report was initially created by the FSMA in July 2022 to respond to frequently asked questions from Belgian-based issuers, offerers, and service providers of digital assets.
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The Markets in Crypto Assets Regulation (MiCA) of the European Parliament will take effect in early 2024, but the phasing plan will act as a guide until then, according to the FSMA.
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Clear Directives from Belgium to the U.S. This is in contrast to the Securities Exchange Commission's (SEC) existing "regulation by enforcement" policy, which rules the United States.
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The Commodity Futures Trading Commission and the digital asset are in competition for regulatory control (CFTC).
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