The FSMA Belgian Financial Authorities Declare Bitcoin is Not a Security

Nov. 26, 2022
The FSMA Belgian Financial Authorities Declare Bitcoin is Not a Security

Bitcoin (BTC) is not a security, according to the Belgian financial authorities FSMA. As it establishes a standard for the whole crypto market, this is crucial for Bitcoin and the cryptocurrency sector. 

Since neither Bitcoin nor Ethereum has an issuer, they are thus unable to adhere to securities requirements. Other digital currencies might not be affected by this. The Financial Services & Markets Authority of Belgium, the FSMA, has declared that crypto assets without an issuer are not regarded as securities. 

The two biggest cryptocurrencies in the world, Bitcoin and Ethereum, are included in two of these assets. It indicates that there is no need to regulate these digital currencies as securities.

The use of BTC and other digital currencies does not exempt them from compliance requirements, though. For certain digital assets, there may, in fact, be additional rules that apply. 

The sort of cryptocurrency they are and the role they play in the market would determine this. If the digital asset is utilized for transfers rather than payments, for instance, there will be a variation in the regulations.

Bitcoin (BTC) And The Regulation of FSMA

The authority declared the Prospectus Regulation, the Prospectus Law, and the MiFID rules of conduct, in theory, do not apply if there is no issuer, as in situations where instruments are created by computer code and this is not done in fulfillment of an agreement between issuer and investor, such as when Bitcoin or Ether are involved.

It is also important to keep in mind that this FSMA directive may be compatible with the new rules that the European Union will impose on Bitcoin and other virtual currencies. 

Don’t forget that the European Union has been working to develop clear laws for the cryptocurrency market; new legislation may be implemented for the industry in the years to come.

International regulatory organizations have been working to provide clearer and better rules for Bitcoin and other cryptocurrencies. Despite this, it is challenging to identify a specific instance when crypto rules have successfully allowed for the growth and integration of digital assets with the rest of the economy.

The Central African Republic (CAR) and El Salvador have both legalized Bitcoin. El Salvador became the first nation in the world in 2021 to permit consumers to handle Bitcoin and treat it like any other form of money. 

Today, the country processes transactions and accepts payments for both products and services using Bitcoin, just like it does with the U.S. currency (USD).

Bitcoin has a market value of $317 billion and is now trading at close to $16,500, according to coinmarketcap. It decreased by 1% during the previous seven days, but within the last 24 hours, it was quite constant. As the week comes to a close with modest gains or losses, other digital currencies also saw extraordinary stability on Friday.

Bitcoin
Source: Tradingview

Ammar Raza

Associate editor
Ammar Raza is an individual with a strong interest in the world of cryptocurrency. He has written extensively on topics such as non-fungible tokens, decentralized apps, and blockchain technology. In addition, he is passionate about collaborating with innovative companies to drive meaningful change.

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