The Belgian regulator has determined that cryptocurrencies like bitcoin and ether do not fall under securities law since there is no issuer.
Since bitcoin and ether have “no issuer,” the Belgian financial regulators have argued that they should not be treated as securities.
Crypto assets “produced by a computer code,” as the Belgian Financial Services and Markets Authority defined it in a statement released on Thursday, should not be considered securities under Belgian law. Examples were Bitcoin and Ether.
For crypto assets that serve as a “payment or exchange function,” however, the FSMA may require compliance with extra regulations. Since bitcoin and ether are already being used as payment methods, the FSMA suggests they be subject to national rules for virtual asset service providers, most of which are concerned with anti-money laundering.
Legislation controlling the marketing of financial products to retail customers does not exclude cryptocurrencies with the ability to be used as payment.
Since “qualification as a security, financial instrument, or investment instrument is irrespective of the technology utilized,” the FSMA claims its framework is technology-neutral.
A final vote on the Markets in Crypto Assets Act, which would standardise crypto asset and service provider regulation across EU member states, is expected to be approved soon. The Food Safety Modernization Act acknowledged that MiCA might affect the validity of its suggestions.
Chairman of the U.S. Securities and Exchange Commission Gary Gensler has said that crypto assets are typically considered securities in the U.S. In the wake of the Ethereum Merge, arguments over the status of cryptocurrencies and ether in particular as securities emerged as a central topic.
Even In any case, the SEC has filed suit against Ripple for allegedly engaging in unregistered securities transactions.