Bitcoin Is Not A Security, According To Belgian Regulator
Bitcoin (BTC) and Ethereum (ETH) are not securities, according to a statement released on Thursday by Belgium’s Financial Services and Markets Authority.
According to FSMA, the Belgian regulation is neutral as regards technology, i.e., whether an asset utilizes a blockchain or a more conventional method shouldn’t affect whether it is classified as a financial instrument or security.
“The stepwise plan is neutral as regards technology. The qualification as security, financial instrument or investment instrument does not depend on the technology that is being used,” read the document.
The regulations state that transferable instruments with an issuer are likely to be considered securities, much like how they were outlined in a July consultation.
This implies that they must adhere to EU regulation known as MiFID, which requires financiers to be transparent and to prevent conflicts of interest. They must provide an honest prospectus of information for possible investors. However, since Bitcoin doesn’t have an issuer, it doesn’t count.
The regulator claimed that it was receiving more inquiries about the legal status of cryptocurrencies and hoped to clarify the most frequently occurring murky areas, such as whether or not digital assets can be considered securities.
According to the Securities and Exchange Commission, Ripple Labs should have registered its token XRP in countries like the US, where debates over when cryptocurrency is safe to have led to legal action.
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