FSMA imposed rules on legal entities operating where needs to register with the authority


Belgium’s
financial regulatory Authorities Financial Services and Markets Authority
(FSMA) imposed a new rule where any legal entities established and operating in
Belgium that wants to provide exchange services between “virtual currencies and
legal currencies” are required to register with the authority.
According to the
information released by the FSMA, starting from May 1, 2022, this rule is
applicable where legal individuals and entities that wish to carry out crypto purchase
or sale transactions services using their own capital in the Belgium region will have to
register in advance within a sharp deadline. The agency announced further that
the same applies to companies offering custody wallet services. In Belgium, cryptocurrency
platforms falling under these two groups, which had been working in Belgium before
this official announcement, should inform the FSMA of their activities within
the next two months, before July 1, 2022. They will get provisional
authorization that will allow them to continue operations till the FSMA reviews
their registration requests. Service providers from Belgian or European
companies are the affected area. Financial regulatory Authorities also want to
know the identities of the shareholders and the persons in control of the
platforms who must have the necessary management qualities. In addition to
disclosing operations, existing businesses have to register as a regulated
business with the financial regulator and four months have been given which
means before Sept. 1 deadline.
The targeted
platforms that will not comply with the new regulations will have to bear
fines, among other penalties, including the prohibition to carry out their
respective activities. Seven conditions are there that crypto service providers
are required to fulfill to maintain active registration with the FSMA. The conditions
that be included constituted in the form of the company with the minimum capital
approx. $52,725 and 50,000 Euros.A FAQ section is available on the
authority’s website for details.
Within three months the country’s regulatory regulator expects to provide all required information and process registration applications. A unique registration number, or the company number, will be provided to crypto service providers once successful registration gets completed. This unique registration number needs to be used in all further interactions with the FSMA.
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Indrani bose
CBW - External Analyst
INDIA