As cryptocurrency adoption continues to rise, several countries are exploring regulatory frameworks. Belgia regulators have created a new law to allow individuals and entities to exchange virtual currencies with legal currencies, custody wallet services or legal currencies.
To be able to operate in Belgium under the new rule, cryptocurrency exchanges and custodial services for wallets will need to register with the Financial Services and Markets Authority.
Crypto Rule of FSMA
Belgia’s financial regulators stated that legal entities and individuals who want to offer crypto exchange services in Belgium or custodial wallets will need to register in advance.
Existing virtual currency service providers must, however, notify the FSMA about the nature of their activities before July 1st according to the anti-money laundering legislation. Four additional months have been granted to the establishments in order to register, with the deadline for submission being September 1.
To be eligible for a license to become a virtual asset provider (VASP), an entity must meet seven criteria. These include having a specific corporate structure and a minimum capital of EUR 50,000. Service providers must also set up a central administration in Belgium, as well as a registered office. They also have to contribute to the operating costs of FSMA.
It also stated that it may ask service providers to provide additional information if it considers it necessary to evaluate applicants’ applications. This usually takes three months. The FSMA will notify its decision via registered mail.
Belgium was skeptical about the cryptocurrency industry in the past. The country has seen an increase in the number of Bitcoin ATMs since BTC’s recent rise to new heights.
Christophe De Beukelaer, a Brussels parliament member, recently became the first European politician to convert EUR 5,500 (approx. $5799) of his salary. Bitcoin. He expects that the move will encourage other politicians to take an interest in the technology, as reported previously. The lawmaker spoke out about crypto adoption.
“We cannot continue to ignore this new world. It’s almost like holding on to the candle or the carriage as new cars and light bulbs emerge. The adoption rate will increase exponentially.”
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