Authorities in Belgium have obliged providers of some crypto exchange and wallet services to register with the country’s financial watchdog. Failure to adhere to the regulations can result in fines and/or prohibition from carrying out any of their activities.
The Financial Regulator Mandates Registration of Crypto Exchange Service Providers In Belgium
Starting from May 1, 2022, any legal entities established and operating in Belgium that want to provide exchange services between “virtual currencies and legal currencies” are required to register with the Financial Services and Markets Authority (FSMA), the country’s financial regulator. The agency also announced that the same is true for companies providing custody wallet services.
The FSMA advised that cryptocurrency platforms which fall under either of these categories and were working in Belgium at the time should inform the watchdog. They must also apply for registration by Sept. 1. They will be granted “provisional authorization” allowing them to continue operations until the FSMA reviews their registration requests.
The service providers affected are Belgian and European businesses. The registration is subject to a minimum capital requirement of €50,000 ($53,000), a FAQ section on the authority’s website details. The FSMA would like to see the names of shareholders as well as the control persons of the platforms, who should have the required management skills.
The FSMA states that exchange service providers refers to entities which use their own capital for purchase and sale transactions. That’s when the provider acts as a counterparty to a deal, just like traditional currency exchange offices.
The new rules do not target platforms that act as intermediaries between clients and third parties in transaction transactions. Operators of crypto-fiat currency exchange automated teller machines (ATMs), will not be subject to the new rules.
Also, custodial services are defined as providing services that allow clients to store, transfer, or keep private cryptographic key for them. FSMA will consider those who provide such services as custodial service providers.
Do you think most crypto service providers in Belgium will be able to meet the new requirements and register with the country’s financial watchdog? Leave your comments below.
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