Belgium's FSMA Calls for Crypto Regulations

The Financial Services and Markets Authority (FSMA) is pushing the government to bring regulations for digital currencies.

In a Senate hearing, Jean-Paul Servais, the chairman of the FSMA, brought the proposal before lawmakers, urging them to establish a “legal framework for the sale, purchase, and use of virtual currencies and all related financial products.”

Citing countries like Thailand, Russia, China, Argentina, Ecuador, Bolivia, and Algeria, which neither regulated nor banned Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, he pointed out the inefficiency of the Belgian authorities to address the industry.

He also pointed out the conflicts on the warnings issued by the market watchdog and the National Bank of Belgium, responding to an event promoting a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term-backed business.

The sheer size of the market is enough to raise alarms

The chairman also pointed out the flooding of the market with over a thousand digital currencies which combinedly valued at more than $320 billion. If not regulated, fraudulent activities using these currencies can impact the investors.

“Due to their non-traceability, the bitcoins are and other virtual currencies very popular in the context of cyber crime: they are ubiquitous on darknet, since they can become cyber crime committed without leaving traces,” the official resolution of the agency stated.

He also mentioned the increasing number of Bitcoin vending machines and ATMs popping up around the world, a couple of which also places in Belgium.

The resolution also cited warnings of economists and Nobel laureates over the surge of the crypto economy.

It also mentioned a royal decree from 2014, which bars any professional products based on virtual currencies from offering to the retail investors.

“A legal framework should be established without delay this virtual money and related financial products, in particular, to protect consumers and the use of this virtual currency for criminal objectives,” the resolution added.