Friday 25 November 2022 ▪ 9:00 pm ▪
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FSMA, the Belgian financial police, has just published a document on cryptocurrencies. In the document in question, the Belgian institution classifies crypto as securities or instruments. She wants to clarify things, because the status of cryptocurrencies is a question that is not always unanimous. A position that stands in stark contrast to that of his American counterparts.
Crypto: The FSMA publishes a document regarding the classification of virtual currencies
L’Belgian financial market authority (FSMA) has just made a document on crypto available to the general public. The institute makes a classification in which it recognizes that certain cryptocurrencies such as bitcoin and Ethereum are not securities. In addition to the classification as securities or real estate instruments, the FSMA also wants to show the way current financial regulations may have consequences crypto.
The institution declares that its document is an answer to the questions it is asked in general. Basically, the body makes a distinction between asset with issuer and an asset without an issuer. As a crypto issuer, bitcoin and Ethereum are not financial instruments or securities.
The institution goes further in classifying virtual currencies by placing them in several categories. It can be clearly read that cryptos have different status with loss and profit shares. If these virtual currencies are negotiable, then they are securities. If they are non-negotiable, they fall into the category financial instruments.
Finally, if a crypto creates a right to provide a product or service and can be used as an investment, it is a security. Looking through the document published by the FSMA, we see some opposition to the regulations in place in the United States. The SEC is in the oven and the mill to keep the monopoly on cryptocurrencies, especially after the FTX crash.
The crypto world has not yet recovered from the scandal in which FTX is mired. In terms of prevention, financial regulatory institutions are increasing their maneuvers to try to regulate this sector. In the United States, the SEC has never hidden its desire to regulate the market to prevent things from deteriorating. In Belgium, the fight is not really the same, even if this document from the FSMA is not necessarily unanimous in the camp of crypto fans.
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A doctoral student in financial law and an experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.