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