The Financial Services and Markets Authority (FSMA) in Belgium released a statement on their official website last April 29, 2022, regarding the new regulations about the imposed mandate on companies and services related to crypto. According to the press release, crypto entities in the country must now register or notify the FSMA to continue operations.
The statement also included specifications of the new regulations. It indicated that any new companies or organizations that wish to offer crypto-related services will have to register with the FSMA starting May 1, 2022.
On the other hand, the existing companies will have to declare their current state of operations to comply with the new mandate. This must be completed before June 1, 2022.
Those who fail to comply with the said rule will be asked to pay a fine of €10,000 or even up to a year in prison. The tight deadline has been enforced as soon as possible and aims to promote regulation and safe crypto trading throughout the country.
This new mandate works in collaboration with a European Union Law, particularly the Fifth Anti-Money Laundering Directive. The gist of this clause is to ensure that all crypto wallet holders will be able to access safe and legal cryptocurrency transactions. In order to achieve this, both traders and crypto-related companies must comply with said laws or regulations.
Those who will be registering with the FSMA must reach the specific requirements to become a virtual asset service provider (VASP). This means that they must have a minimum capital of €50,000 among other requirements to qualify.
His feat isn’t Belgium’s first attempt to enter the crypto sphere. Government officials such as parliament member Christophe De Beaukelaer became one of the first European politicians to convert his salary from Euros to cryptocurrency.
According to reports by Crypto Potato, last January 27, 2022, Beaukelaer made a vow to convert his monthly salary of €5,500 per month into Bitcoin. He mentions in a media coverage session with Newswep why he decided to take this step.
‘Through this action, I want to demonstrate my confidence in a financial world in the making, a more transparent financial world, more accessible in the sense that it is decentralised. It is not run by a few people who decide to print more or less banknotes without any parliamentary control or debate’, he says.
Both old and new crypto companies and services in Belgium must comply with the deadline to avoid further sanctions. The latest mandate brings Belgium and Europe closer to adopting mainstream crypto wherein further regulations are now required.
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