Belgian Financial Regulator Sets New Rule for Crypto Companies

The Financial Services and Markets Authority (FSMA), Belgium's financial regulatory agency, has issued a new rule for crypto exchanges and wallet services in the region. Crypto service providers will have to register on a strict timeline.

According to FSMA, the rule will take effect on May 1st and will compel any legal businesses or people who seek to provide crypto-based services or custodial wallets in Belgium to register in advance.

Businesses that were in operation before to the formal announcement are obligated by law to notify the FSMA of their activities by July 1st. Existing enterprises must register as regulated businesses with the financial regulator by September 1st, in addition to declaring their operations.

The FSMA also lists seven standards that crypto firms must adhere to in order to maintain active registration with Belgian regulators. These requirements include being organized as a corporation with a minimum capitalization of $52,725 dollars (EUR 50,000).

The FSMA aims to finish the registration process within three months if all of the essential information is given. Crypto service providers will receive a unique registration number after completing the registration process. They will have to utilize this number in any future contacts with the FSMA.

Since the beginning of this year, when Christophe De Beukelaer, a Brussels member of parliament, became the first politician in Europe to convert his salary into Bitcoin, Belgium has taken a pro-crypto posture.