Belgium tightens control over the crypto industry

Photo - Belgium tightens control over the crypto industry
The main reason for tightening control over the crypto market was scammers, because of which the Belgians have already lost more than 10 million euros since 2019.
Belgium is introducing more complex mechanisms for working with digital assets. In order to be able to engage in transactions, crypto exchanges and owners of custodial wallets will now need to obtain the appropriate licenses. This was stated by the Financial Services and Markets Authority of Belgium. The FSMA noted that such actions are aimed at protecting customers and minimizing the possible risks of stealing money from the accounts of the Belgians. Having a license issued by supervisory authorities will ensure that the exchange or wallet owner uses all necessary means of security. The new rules will come into effect in May this year. Thus, according to the FSMA, all suppliers must submit an application for willingness to continue their activities on the market until July 1, 2022. After that, an application for registration should be submitted. This must be done by September 1, 2022. If the relevant applications are not submitted on time and there is no license, then violators will be sentenced to heavy fines. If, after receiving a fine, the crypto-exchange or the owner of the custodial wallet doesn’t apply for the license and goes on working illegally, they may face more serious legal consequences.