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Bitcoin, Ethereum Non-securities: Belgian FSMA clarification

The Belgian financial regulator does not take into account crypto assets like Bitcoin (BTC) and Ethereum (ETH) be securities.

The Financial Services and Markets Authority (FSMA) released a statement saying that cryptocurrenciesissued solely by computer code do not constitute securities. The regulator’s response comes after receiving an increasing number of questions about the application of financial rules to the asset class.

Profit for BTC, ETH

As a prominent financial regulator seeks to address one of the sector’s key gray areas, the FSMA’s recent clarification is seen as a win for the community. The basis is that a crypto asset is not a security if there is no issuer.

“When there is no issuer, as in cases where instruments are created by computer code and not in execution of an agreement between issuer and investor (e.g. Bitcoin or Ethereum), then in principle the prospectus regulation, the prospectus, applies The law and the MiFID code of conduct do not apply.”

The agency also stated that crypto assets classified as non-securities may be subject to different laws and regulations. However, this only applies if they have a payment or barter function, i.e. if a company uses the assets in question “as a medium of exchange”.

The FSMA considers the Belgian ‘phased’ plan to be technology agnostic and that it does not depend on the technology used to qualify as a security, financial instrument or investment vehicle. The regulator also stated that it would update the plan if necessary.

According to the regulator, the phased plan would serve as a guide until the European Parliament passes the Markets in Crypto Assets Regulation (MiCA), which is planned for early 2024.

A precedent for the US?

Belgium’s statement could set a global precedent for regulatory frameworks, in stark contrast to the views of US Securities and Exchange Commission Chairman Gary Gensler Ripple Labs continues to battle with the securities regulator over XRP’s status.

The agency previously claimed that 99% of cryptocurrency trading is most likely securities trading and falls within its scope.

Additionally, Ethereum’s move from to proof-of-stake also put the industry back in the SEC’s crosshairs after Gensler stated that PoS-based coins could be subject to securities laws.

Source: Crypto News Deutsch

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