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Belgium's financial watchdog takes a step toward regulating crypto

Updated: Jul 25, 2024
Published: May 1, 2022
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All crypto-exchanges and custodial wallet services in Belgium will be required to register with the Financial Providers and Markets Authority (FSMA).

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FSMA will regulate the crypto industry

Belgium's Financial Providers and Markets Authority (FSMA) has released new regulation allowing all crypto-exchanges and custodial wallet services in the region to register with the agency beginning May 1. Any unregistered exchanges or wallet services found operating after the deadline will face penalties or additional legal action.

This new regulation is part of Belgium's ongoing efforts to govern the growing crypto-industry. This will ensure that businesses operating in this space comply to high safety and security standards. The new registration requirement imposed by the Belgian FSMA is another another illustration of the slowly but steadily developing trend of institutional involvement in the crypto industry.

Other countries have followed similar path

A similar approach has been seen in the United Kingdom, where companies must be registered with the Financial Conduct Authority. This solution did not go well in the country, as crypto companies were dissatisfied with their difficulties in registering with the FCA. Only 33 companies were able to register before their temporary registration expired.

It remains to be seen whether this will go more smoothly in Belgium or if companies will face similar difficulties registering with the financial regulator. The recent moves by the FCA in the United Kingdom have caused some crypto firms to relocate their operations to other European countries.

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