The Belgian Financial Services and Markets Authority believes that issuers are required to know when cryptoassets are considered securities. Despite the fact that the law on cryptocurrencies in the EU is not yet in force.
The FSMA has announced that digital assets that are limited in supply or can be traded for profit can be considered securities. Representatives of the regulator state that the European Union is now finalizing the Crypto Asset Markets Regulation (MiCA), but it is time for cryptocurrency issuers to know whether their assets are subject to securities laws:
“Pending a harmonized European approach, the FSMA wishes to clarify when cryptoassets may be considered securities, investment vehicles or financial instruments and therefore may be subject to issuance and/or business laws.”
In the latest version of the MiCA bill, the EU authorities intend to oblige issuers to issue a White Paper for investors. Until the law goes into effect (expected sometime in 2024), regulators will use a set of demonstrative characteristics to sort out enforcement measures.
The EU Markets and Financial Instruments Directive (MiFID) requires businesses to be transparent in their dealings with potential investors and to be free from conflicts of interest. The document states that assets such as bitcoin (BTC) and ether (ETH) do not have an issuer, as they are created by computer code.
Belgium is increasingly tightening regulation of cryptocurrencies. In May, the Belgian Financial Services and Markets Authority (FSMA) introduced the licensing of local companies that provide crypto-currency services to citizens. Now such companies are required to obtain a license to work with digital assets. The appeal states that the new regulation is being created to regulate the ever-growing crypto industry.