FSMA, the Belgian financial policeman, has just published a document on cryptocurrencies. In the document in question, the Belgian institution classifies crypto as securities or instruments. She wants to clarify things, because the status of cryptocurrencies is an issue that is not always unanimous. A position that contrasts completely with that of his American counterparts.
Crypto: The FSMA publishes a document on the classification of virtual currencies
L’belgian financial market authority (FSMA) has just made a document on crypto available to the general public. The institution makes a classification in which it recognizes that certain cryptocurrencies such as bitcoin and Ethereum are not securities. In addition to the classification as real estate securities or instruments, the FSMA also wants to show the way in which the current financial regulations may have repercussions a crypto.
The institution maintains that its document is a response to the questions it is generally asked. In essence, the body differentiates between an asset with an issuer and an asset without an issuer. As an issuerless crypto, bitcoin and Ethereum are not financial instruments or securities.
The institution goes further in the classification of virtual currencies by placing them in several categories. It can clearly be read that cryptos with loss and profit shares have a status that can vary. If these virtual currencies are negotiable, then they are securities. If it is not possible to negotiate them, they fall into the category financial instruments.
Finally, if a crypto proves a right to the provision of a product or service and can be used as an investment, then it is a security. Looking through the document published by the FSMA, we see some opposition to the regulations in force in the United States. The SEC is in the oven and in the mill to keep the monopoly on cryptocurrencies, especially after the crash of FTX.
Conclusion
The crypto universe has not yet recovered from the scandal in which FTX is mired. In prevention, financial control institutions are increasing their maneuvers to try to regulate this sector. In the United States, the SEC has never hidden its desire to control the market to prevent things from degenerating. In Belgium, it’s not really the same fight, even if this FSMA document will not necessarily be unanimous in the camp of crypto fans.
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