Belgium’s financial regulatory authority doesn’t consider BTC and ETH as securities | The Financial Express

Belgium’s financial regulatory authority doesn’t consider BTC and ETH as securities

According to Cointelegraph, Belgium’s Financial Services and Markets Authority gave the explanation through a November 22, 2022, report

Belgium’s financial regulatory authority doesn’t consider BTC and ETH as securities
It is believed that Belgium haven't been a big adopter of digital assets, according to a study by blockchain data platform Chainalysis

Belgium’s financial regulatory authority has given its confirmation around its position that Bitcoin (BTC), Ether (ETH) and other cryptocurrencies which are issued using computer code do not constitute securities, as reported by Cointelegraph.

According to Cointelegraph, Belgium’s Financial Services and Markets Authority (FSMA) gave the explanation through a November 22, 2022, report. It is believed that the clarification has come in post increase in demands for answers around the application of Belgium’s existing financial laws and regulations towards digital assets, as mentioned by FSMA. 

“If there is no issuer, as in cases where instruments are created by a computer code and this is not done in execution of an agreement between issuer and investor (for example, Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Law and the MiFID rules of conduct do not apply,” the FSMA said. 

On the basis of information by Cointelegraph, FSMA mentioned about its stepwise plan being neutral to the technology, with suggestions around irrelevance of digital assets’ existence and are facilitated on a blockchain or through other traditional methods. FSMA emphasised on how the stepwise plan would be important until the European Parliament’s markets in Crypto Assets Regulation (MiCA) is adopted, which is expected to begin in 2024. Reportedly, Belgium’s guidelines are with regard to the “regulation by enforcement” approach taken by the US Securities Exchange Commission (SEC) which is currently vying for digital asset regulatory control with the US Commodity Futures Trading Commission (CFTC).

Moreover, Cointelegraph noted that Gary Gensler, chairman, SEC, has been of the opinion for BTC to be constituted as a commodity. Gensler also made the argument that post-Merge ETH and other staked coins may constitute a security under the Howey test. It is believed that Belgium haven’t been a big adopter of digital assets, according to a study by blockchain data platform Chainalysis. 

(With insights from Cointelegraph)

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First published on: 25-11-2022 at 11:41 IST