Belgium’s Financial Services and Markets Authority (FSMA) has imposed new rules requiring crypto firms operating in the nation to register with the watchdog and retain a certain amount of regulatory capital.
The new regulation requires any virtual asset service provider (VASP) operating in the nation to notify the FSMA of their operations by July 1 and apply for registration by September 1.
The legislation will apply to organizations that provide custodial wallets and cryptocurrency exchange services, as well as crypto enterprises who want to start operations in the European country.
According to the declaration, VASPs who wish to operate in the nation must have a corporate structure and a minimum capital of €50,000 (roughly $52,718).
The entity must also establish an administrative office in Belgium and contribute to the FSMA’s operational costs in order to be regulated. The new requirements are comparable to those enacted by the New York Department of Financial Services (NYDFS).
The agency also noted that it may request further information before reaching a final judgment, which may take up to three months.
Belgium is one of the nations that supports cryptocurrency. Christophe De Beukelaer, a member of Dutch parliament, just became the first politician in Europe to convert his whole salary into cryptocurrency.
De Beukelaer explained his choice as:
We can no longer remain in the dark about this new reality. As automobiles and light bulbs come, it’s like holding to the carriage or the candle.
Several governments are paying greater attention to cryptocurrency rules, with some even starting work on regulating the industry. Authorities throughout the globe have faced new hurdles in regulating the crypto industry and protecting consumers from threats as it has grown.
Crypto laws and licenses are expanding in parallel with global popularity. Authorities in the United Kingdom and Brazil, for example, are requiring crypto service providers to register with them in order to better safeguard crypto investors.