According to the Belgian financial regulator, Bitcoin (BTC) is not a security. This is a very important for Bitcoin and the crypto industry as it sets a precedent for the whole crypto market. Therefore, both Bitcoin and Ethereum cannot follow securities regulations considering that they have no issuer behind them. This might not apply to other virtual currencies.
Bitcoin Is Not a Security Says Belgium’s Regulator
In a recent statement released by the FSMA, the financial services and markets authority of Belgium, crypto assets that do not have an issuer are not considered securities. Two of these assets include Bitcoin and Ethereum, the largest cryptocurrencies in the world. That means that these virtual currencies do not fall under securities regulation.
Nevertheless, this does not mean that Bitcoin and other virtual currencies do not have to follow regulations. Indeed, there might be other regulations that apply to these digital assets. This would depend on the type of crypto they are and the function they play in the market. For example, there will be a regulatory difference if the digital asset is used for transfers than if the coin is used for payments.
The regulator wrote as follows:
“If there is no issuer, as in cases where instruments are created by a computer code and this is not done in execution of an agreement between issuer and investor (for example, Bitcoin or Ether), then in principle the Prospectus Regulation, the Prospectus Law and the MiFID rules of conduct do not apply.”
It is also worth taking into consideration that this guideline that has been released by the FSMA could be in line with the new regulations that will apply to Bitcoin and other virtual currencies in the European Union (EU). Let’s not forget that the EU has been trying to work on clear regulations for the crypto market and, in the coming years, we could see new rules applied to the crypto industry.
Regulatory agencies around the world have been trying to create better and clearer regulations for Bitcoin and other cryptocurrencies. Despite that, it is hard to find a clear example of where crypto regulations have worked properly for digital assets to expand and integrate with the rest of the economic activities.
We only know that El Salvador and the Central African Republic (CAR) have made Bitcoin legal tender. In 2021, El Salvador was the first country in the world to let users handle Bitcoin and treat it as any other currency. Nowadays, Bitcoin is used like the U.S. dollar (USD) to process transactions and make payments for both goods and services in the country.
According to CoinGecko, Bitcoin is being traded at close to $16,500 and it has a market capitalization of $317 billion. In the last 7 days, Bitcoin fell by 1%, but it remained quite stable in the last 24 hours. Other digital currencies have also experienced extreme stability on Friday as the week closes with moderate gains or losses.