As bitcoin's popularity continues to rise, several nations have begun to investigate regulatory frameworks. Belgium officials have imposed a new rule for persons and businesses wishing to provide exchange services between virtual currencies and legal currencies, as well as custody wallet services, to add to the trend.

Under the new legislation, Belgian cryptocurrency exchanges and custodial wallet services must register with the Financial Services and Markets Authority (FSMA) in order to operate in the nation.
<h2><strong>FSMA’s Crypto Rule</strong></h2>
Belgium's financial regulators announced in a statement that legal persons and businesses wishing to provide crypto exchange services or custodial wallets in the nation must first register.

Existing virtual currency service providers, on the other hand, are required by the anti-money laundering statute to notify the FSMA of the nature of their operation by July 1st. The establishments have also been given a further four months to apply for registration, with a September 1st deadline.

Furthermore, an organization must meet seven conditions to get a license as a virtual asset service provider (VASP), including possessing a certain corporate structure and a minimum capital of EUR 50,000 ($52,718 approx.). The service providers must also establish a central administration and registered office in Belgium, as well as contribute to the FSMA's operational costs.

The financial regulator also stated that it may request extra information from service providers in order to review their applications, which generally takes three months. The FSMA will then send a registered letter notifying the public of its decision.
<h2><strong>Crypto Stance</strong></h2>
Belgium has been wary of the cryptocurrency business in the past. However, as BTC has risen to new heights, the country has seen an increase in the number of Bitcoin ATMs in recent months.

Christophe De Beukelaer, a Brussels member of parliament, has made history by being the first politician in Europe to convert his whole salary of EUR 5,500 (5,799 approx.) to Bitcoin. As previously reported, he expects the move to pique the interest of other regional authorities in the maverick technology.

Talking about crypto adoption, the lawmaker said,
<blockquote><em>“We can no longer remain ignorant of this new world. It’s a bit like clinging to the carriage or the candle as cars and light bulbs appear. Adoption is going to be exponential.”</em></blockquote>

Belgium’s FSMA Requires New Crypto Companies to Register in May

The FSMA will then send a registered letter notifying the public of its decision.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Belgium’s FSMA Requires New Crypto Companies to Register in May

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