The Belgian Financial Services and Markets Authority (FSMA) is introducing licensing for local companies that provide crypto-currency services to citizens.
The Belgian regulator has announced that under the new rules, all local cryptocurrency trading platforms and custodial wallet operators are required to obtain a license to work with digital assets from May 1. The appeal states that the new regulation is being created to regulate the ever-growing crypto industry.
According to the regulator, the registration of cryptocurrency companies ensures that businesses operating in the digital asset industry will comply with security standards.
“Suppliers must notify FSMA by July 1, 2022 that they intend to continue operating and apply for registration by September 1, 2022,” the announcement reads.
The FSMA has warned that any unregistered exchanges or custodial wallet operators that continue to provide services without a license after the deadline will face fines or more serious legal consequences.
In 2020, the Belgian financial regulator reported that since May 2019, citizens of the country have lost more than 10 million euros in fraudulent schemes related to the Forex market and cryptocurrencies. The country does not restrict its citizens from using cryptocurrencies. Recently, a member of the Parliament of the City of Brussels promised to convert his entire salary for 2022 into bitcoins.
