The Kingdom of Belgium is a Northwestern European nation that shares its borders with Germany and Netherlands. The country is also known for being the headquarters of NATO and the European Union.
The financial regulator of Belgium has recently issued a decree that claims that Bitcoin and Ethereum are not securities since they don’t have appointed issuers.
It can also be seen as the acknowledgment of the decentralized status of Ethereum and Bitcoin blockchains. Both of the DeFi protocols are created by computer programming, and thus they cannot be characterized as securities or fall under security regulations.
FSMA will Define Cryptocurrencies
The FSMA has also hinted at the introduction of new cryptocurrency regulations. The financial regulator has claimed that all digital assets that provide a payment or exchange utility will be subjected to other regulatory implications.
The possible rules that currencies like Bitcoin and Ethereum need to adhere to are the virtual asset service provider legislature and Anti-money laundering clauses.
The agency also mentioned that cryptocurrency transactions are to be regulated as financial products to protect the interest of retail clients. The statement also claimed that the basis for cryptocurrencies to be declared as securities are isolated from their underlying technological structure.
EU came together to discuss the matter of cryptocurrency regulations in Europe in the wake of the Russia and Ukraine war. However, the EU passed MiCA or Markets in Crypto Assets Regulations that voted in favour of regulating cryptocurrencies rather than imposing a ban.
The call of President Biden on the G20 Summit and the latest recommendation of FSMA can spark some changes.
It is worth mentioning that the EU is expected to issue a final vote on MiCA. Meanwhile, in the USA, the call of SEC under the reign of Chairperson Gary Gensler has been less than encouraging.
However, his purported involvement with the FTX controversy might not carry a lot of weight amidst the call for a congressional investigation on the matter.