Belgian FSMA Requires New Crypto Firms To Register In May

Several countries have started exploring regulatory frameworks as cryptocurrency adoption remains high. Adding to the trend, Belgian regulators have imposed a new law in place for individuals and entities wishing to provide exchange services between virtual and legal currencies or custodial wallet services.

Belgian cryptocurrency exchanges and custodial wallet services will need to register with the Financial Services and Markets Authority (FSMA) to operate in the country under this new rule.

The FSMA cryptographic rule

In a statement, Belgian financial regulators said legal persons and entities seeking to provide crypto exchange services or custodial wallets in the country will need to register in advance.

Existing virtual currency service providers, on the other hand, must notify the FSMA of the nature of their activity by July 1 under the anti-money laundering law. Establishments also have an additional four months to apply for registration, with the deadline being September 1.

Additionally, to be licensed as a Virtual Asset Service Provider (VASP), an entity must meet seven criteria, including having a specific corporate form and a minimum capital of EUR50,000 (approximately $52,718). Service providers are also required to establish a central administration and registered office in Belgium and must pay contributions to the operating costs of the FSMA.

The financial regulator also said it may ask service providers for additional information it deems necessary to assess their requests, which usually takes three months. The FSMA will then notify its decision by registered letter.

Crypto position

Belgium was previously skeptical of the cryptocurrency industry. But as BTC surged to new highs, the country has seen an increasing number of Bitcoin ATMs pop up in recent months.

Brussels MP Christophe De Beukelaer recently became the first politician in Europe to convert his entire salary of 5,500 euros (about 5,799) into Bitcoin. As previously stated, he expects the move to encourage other politicians in the region to show similar interest in the maverick technology. Speaking about crypto adoption, the legislator said,

“We can no longer remain ignorant of this new world. It’s a bit like clinging to the carriage or the candle as cars and light bulbs appear. Adoption is going to be exponential.


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Belgian FSMA Requires New Crypto Firms To Register In May

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