Fri Nov 25, 2022 ▪ 9:00 PM ▪
3
min read – through
The FSMA, the Belgian financial police officer, has just published a document on cryptocurrencies. In the document in question, the Belgian institution classifies crypto as securities or instruments. She wants to create clarity, because the status of cryptocurrencies is not always uniform. A position that contrasts completely with that of his American colleagues.
Crypto: The FSMA publishes a document on the classification of virtual currencies
L’Belgian financial market authority (FSMA) has just made a document on crypto available to the general public. The institution creates a classification acknowledging that certain cryptocurrencies such as bitcoin and Ethereum are not securities. In addition to the classification as real estate securities or instruments, the FSMA also wants to show how the current financial regulations may have consequences a cryptocurrency.
The institution states that its document is an answer to the questions it is generally asked. Essentially, the body differentiates between an asset with an issuer and an asset without an issuer. Being an issuerless crypto, Bitcoin and Ethereum are not financial instruments or securities.
The institution goes further in the classification of virtual currencies by classifying them into different categories. It is clear to read that cryptos with loss and profit sharing have a status that can vary. If these virtual currencies are tradable, then they are effects. If they are non-negotiable, they fall into the category financial instruments.
Finally, if a crypto proves it is entitled to the delivery of a product or service and can be used as an investment, then it is a security. Going through the document published by the FSMA, we see some resistance to the regulations in force in the United States. The SEC is in the oven and in the mill to maintain its monopoly on cryptocurrencies, especially after the FTX crash.
Conclusion
The crypto universe has not yet recovered from the scandal in which FTX is embroiled. In terms of prevention, financial control institutions are increasing their maneuvers to try to regulate this sector. In the United States, the SEC has never hidden its desire to control the market to prevent things from deteriorating. In Belgium it is not really the same fight, even if this document from the FSMA will not necessarily be unanimous in the camp of crypto fans.
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Cédrick Aimé, graduate student in finance law and experienced SEO web editor, is passionate about cryptocurrencies, trading, etc. He naturally participates in the daily blockchain revolution for better democratization of DeFi thanks to his articles.