Belgian financial regulator FSMA to regulate crypto exchange services

The financial regulatory body in Belgium has imposed a new rule that requires cryptocurrency exchanges and crypto custodians in the country to register within a tight deadline.

New rule will take effect May 1, 2022

The new rule will take effect from tomorrow, May 1, 2022. From this date, all legal entities and (financial) entities wishing to offer crypto exchange services or custody services in Belgium must pre-register, according to the information provided. released by the FSMA. The FSMA is the Financial Services and Markets Authority, the financial regulatory body in Belgium. This was sent via the user’s Twitter channel ‘FSMA_Info’ known created.

Comply with new legal obligations

However, companies that are already active in the crypto sector in Belgium will be given some time to comply with the new legal obligations. These companies must comply with the new legal obligations before 1 July 2022, 2 months after the new law takes effect.

In order to maintain an active registration with the FSMA, crypto service providers must meet 7 new conditions, including incorporation in the form of a company with a minimum capital of approximately €50,000.

At the start of 2022, Belgium’s pro-crypto stance became apparent when Brussels MP Christophe De Beukelaer became the first European politician to convert his salary into Bitcoin (BTC). For this, Beukelaer is reportedly using the crypto trading platform called ‘Bit4You’. Every month, Beukelaer converts approximately €5,500 into the top cryptocurrency.

In addition, Beukelaer also announced his intention to inspire other politicians in the region to support the growing crypto economy.

In addition to making their activities public, existing companies have been given 4 months to register as a regulated company with the financial regulator. The deadline for this is September 1, 2022. After these companies have submitted their registration applications, their application is expected to be processed within 3 months. When this is successfully completed, crypto service providers will receive a unique registration number, also known as the enterprise number. This unique number must in turn be used in all interactions with the FSMA.

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