Belgium’s Financial Services and Markets Authority (FSMA) has announced a new rule requiring all crypto-exchanges and custodial wallet services in the region to register with the agency from 1 May.
This new regulation is part of Belgium’s ongoing efforts to regulate the growing crypto-industry. This will ensure businesses operating in this space are held to high standards of safety and security. The FSMA added,
“Providers already operating on 1 May 2022 must notify the FSMA of the exercise of their activity before 1 July 2022 and apply for registration before 1 September 2022.”
Any unregistered exchanges or wallet services found operating after the imposed deadline will be subject to fines or other legal action.
Despite concerns from some in the industry, many see this new rule as necessary for ensuring the growth and stability of the crypto-sector in Belgium. As more people invest in cryptocurrencies, it is becoming increasingly important for regulators to provide clarity and guidance on how these businesses operate.
The Belgium FSMA’s new registration requirement is yet another example of the slowly, but surely increasing trend of institutional involvement in the cryptocurrency space. As more businesses and organizations begin to take notice of the potential of cryptocurrencies, we can expect to see more rules and regulations being put in place to protect investors.
In fact, the present guidance is in line with its statements in the past, with Belgium often warning its citizens about prevalent cryptocurrency scams.
For Belgium’s crypto-industry, however, the looming deadline imposed by the FSMA is sure to bring some uncertainty and anxiety. Especially since the country hasn’t exactly been shy about its citizens adopting and using crypto. In fact, according a recent report, almost 2.5% of the nation’s population holds crypto – >270K.
Nevertheless, this new rule is a sign that Belgium is committed to being a leader in the rapidly changing cryptocurrency landscape.