Belgium requires crypto companies to register with the country’s financial regulator FSMA.

Belgian authorities have required providers of certain cryptocurrency exchanges and wallet services to register with the country’s financial regulator. Targeted platforms that do not comply with the new rules will be subject to fines, as well as other sanctions, including banning their respective activities.

Mandatory registration for cryptocurrency exchange service providers in Belgium

From 1 May 2022, any legal person established and operating in Belgium wishing to offer exchange services between “virtual currency and fiduciary currency” will need to register with the country’s financial regulatorthe Financial Services and Markets Authority (FSMA). The agency noted that the tax also applies to companies that offer custodial portfolio services. Companies Belgian or European are the service providers concerned.

The regulator said that cryptocurrency platforms that fall into these 2 categories, operating in Belgium before the specified date, should notify the FSMA their activities by July 1, 2022. Additionally, they must also request their registration before the September 1 deadline. They will receive a “temporary authorization” allowing them to continue their activities until the FSMA examines their application for registration.

According to the FAQ section of the site details website of the authority :

  • The minimum capital required for registration is €50,000 ($53,000),
  • The FSMA also want to know the identity of the shareholderss and those who control the platform who must have the necessary management qualities.
  • The companies concerned must have set up anti-money laundering policies required.

To discover: South Korea postpones the implementation of taxes on crypto winnings in 2024.

The FSMA will notify applicants of their registration status no later than 3 months.

The FSMA will notify applicants of the success or failure of their application by registered mail within 3 months following receipt of the request completed. Successful applicants will receive a unique registration or business number, which must be used for all future business communications with the FSMA. The time it takes to review an application will depend on its quality.

For each exchange service or wallet service request, the request incurs initial non-refundable fee of EUR 8,000. If you apply for both, you must pay 16,000 euros.

Furthermore, companies found to be operating without registration may incur prison sentences ranging from one month to one year and fines ranging from 400 to 80,000 euros.

Belgium was previously skeptical of the cryptocurrency industry. But as BTC has surged to new highs, more and more Bitcoin ATMs have been popping up in the country in recent months.

Bonus: The SEC is expanding its crypto investigations division to bolster investor protection.

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Belgium requires crypto companies to register with the country’s financial regulator FSMA.

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