Belgian regulator says Bitcoin, Ethereum and other cryptocurrencies are not securities

The author Editor DiarioBitcoin

This is according to the Belgian Markets and Financial Services Authority Bitcoinether and other decentralized currencies are not securities.


  • The Belgian regulator states that BTC and ETH are not securities
  • They say that cryptocurrencies, which are issued by computer code, are not securities
  • The opinion of the Belgian authority differs from that of the United States SEC

A topic that has always been around cryptocurrencies is whether they are a value or not. Values ​​(securities, in English) are documents confirming ownership rights or the actual issuance of a loan to the holder. For example, actions such as bills, bonds, shares, futures contracts, warrant and certificates.

This is a big debate in the United States, for example Securities and Exchange Commission, SEC, has said that most cryptocurrencies currently in circulation should be considered securities.

But not all regulators think alike. The The Belgian Financial Services and Markets Authority, FSMAissued on November 22 document your position that Bitcoin (BTC), Ether (ETH) and other cryptocurrencies that are issued solely by computer code are not securities.

The clarification follows an increase in responses to how Belgian financial laws and regulations apply to digital assets. FSMA.

Although not legally binding under Belgian or European Union law, FSMA indicated that, according to him “plan in stages”, Cryptocurrencies would only be classified as securities if they were issued by a person or entity:

“If there is no issuer, as in cases where the instruments are created by computer code and this is done outside of an agreement between the issuer and the investor (for example, Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Act and the MiFID conduct rules do not apply.

In addition, the Belgian regulator noted that cryptocurrencies that do not qualify as securities may still be subject to other rules if a company uses the digital asset as a medium of exchange:

“However, where names perform a payment or exchange function, different rules may apply to names or persons providing certain services associated with those names.”


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“Without pretending to be an ex.”We draw your attention to the rules governing virtual asset service providers, which will come into effect in 2022. May 1st In the case of financial products whose underlying instruments are such instruments, First, a determination of the classification of the financial product must be made. In addition, 2014 may also be applied. April 3 FSMA Regulation on Prohibition of Marketing Certain Financial Products to Retail Customers.


In addition, it performs a classification of instrument types to know whether it is an investment instrument:

• “When instruments represent the right to a share of the project’s profits or losses and may have the right to vote or the right to the payment of a sum of money, or equivalent thereto, or if the instruments are transferable, then These are, as a rule, securities within the meaning of the provisions of the Prospectus. is also in this case financial instruments and are subject to the MiFID conduct rules; or if they are non-transferable, the instruments are essentially equity instruments.
investment in the sense of the Law of Prospects.
• The instruments give the right to a service or product provided by the issuer, or if a general analysis of the specific features of the product and the way the instruments are marketed shows that the instruments have an investment purpose, even if it is secondary, then the instruments are generally classified as investment instruments In the sense of the Law of Prospects”.

In addition, in order to determine whether the instruments have an investment objective, according to the FSMA document, the following aspects are important, among others:

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– The instruments may be transferred to persons other than the issuer;

– The issuer issues a limited number of instruments;

– The issuer plans to sell them on the market and expects a profit;

– The collected funds are used for the general financing of the issuer, and the service or project is not ready yet;

– Means used to pay employees;

– The issuer organizes several sales rounds at different prices.


The FSMA first prepared the report in 2022 in July to answer frequently asked questions from issuers, offerors and service providers of digital assets based in Belgium. FSMA stated that the step-by-step plan will serve as a guide until it is adopted Market Rules for Crypto Assets (MiCA) of the European Parliament, which should enter into force in 2024. at the beginning

In his argument for publishing the document, he says: “FSMA is receiving increasing questions about the application of financial regulations to crypto-assets. What people seem to be looking for the most is clarity on when a cryptocurrency asset can be classified as a security under the Prospectus Regulation or an investment vehicle under the Prospectus Act. Depending on how the asset is classified, other legislation may also apply, such as the rules set out in the MiFID directive if the cryptocurrency assets are financial instruments.

sources: FSMA, CointelegraphFile, Archive

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WARNING: This is an informative article. DiarioBitcoin is a communication tool and does not promote, endorse or recommend any investment. It is worth noting that in some countries investments in cryptocurrency assets are not regulated. They may not be suitable for retail investors as the entire amount invested may be lost. Check your country’s laws before investing.

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