07-11-2022, 03:37 PM
Belgian FSMA Consults on How to Classify Crypto Assets
<p>The Financial Services and Markets Authority (FSMA), Belgium’s financial market regulatory agency, says it has drawn up a Communication on the classification of crypto-assets as securities, investment instruments or financial instruments.</p> <p> </p> <p>The FSMA said it had launched a consultation on the draft on Tuesday. The consultation is to be wrapped up on July 31.</p> <p> </p> <p>The Belgian agency said the consultation is open to all players in the country’s financial sector and investors’ representatives.</p> <p> </p> <p>The supervisory authority further explained that the action is a response to the questions it regularly receives about the classification of cryptocurrency assets.</p> <p> </p> <p>“With this Communication, the FSMA wishes to provide clarity, while awaiting a harmonized European approach, about when crypto-assets may be considered to be securities, investment instruments or financial instruments, and whether they may fall within the scope of the prospectus legislation and/or the Markets in Financial Instruments Directive (MiFID) conduct of business rules,” FSMA explained. </p> <p> </p> <p>The financial markets watchdog further explained that the policy is geared at helping users and service providers to classify crypto-assets within the applicable legal framework not designed for them.</p> <p> </p> <p>However, it pointed out that the measure will not address all potential classifications. </p> <p> </p> The MiCA Framework <p> </p> <p>The European Union last week reached a provisional agreement on the Markets in Crypto Assets (MiCA) proposal which covers a wide range of assets and services. </p> <p> </p> <p>MiCA seeks to protect investors and promote financial stability while also allowing innovation and fostering the attractiveness of Europe’s crypto-asset sector.</p> <p> </p> <p>“Currently, consumers have very limited rights to protection or redress, especially if the transactions take place outside the EU," the EU explained in a press statement. </p><p>"With the new rules, crypto-asset service providers will have to respect strong requirements to protect consumers’ wallets and become liable in case they lose investors’ crypto-assets."</p><p>As member states of the EU already have their national legislation for crypto-assets, MiCA will bring more clarity to the EU, the political union added.</p> <p> </p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com/cryptocu...to-assets/
<p>The Financial Services and Markets Authority (FSMA), Belgium’s financial market regulatory agency, says it has drawn up a Communication on the classification of crypto-assets as securities, investment instruments or financial instruments.</p> <p> </p> <p>The FSMA said it had launched a consultation on the draft on Tuesday. The consultation is to be wrapped up on July 31.</p> <p> </p> <p>The Belgian agency said the consultation is open to all players in the country’s financial sector and investors’ representatives.</p> <p> </p> <p>The supervisory authority further explained that the action is a response to the questions it regularly receives about the classification of cryptocurrency assets.</p> <p> </p> <p>“With this Communication, the FSMA wishes to provide clarity, while awaiting a harmonized European approach, about when crypto-assets may be considered to be securities, investment instruments or financial instruments, and whether they may fall within the scope of the prospectus legislation and/or the Markets in Financial Instruments Directive (MiFID) conduct of business rules,” FSMA explained. </p> <p> </p> <p>The financial markets watchdog further explained that the policy is geared at helping users and service providers to classify crypto-assets within the applicable legal framework not designed for them.</p> <p> </p> <p>However, it pointed out that the measure will not address all potential classifications. </p> <p> </p> The MiCA Framework <p> </p> <p>The European Union last week reached a provisional agreement on the Markets in Crypto Assets (MiCA) proposal which covers a wide range of assets and services. </p> <p> </p> <p>MiCA seeks to protect investors and promote financial stability while also allowing innovation and fostering the attractiveness of Europe’s crypto-asset sector.</p> <p> </p> <p>“Currently, consumers have very limited rights to protection or redress, especially if the transactions take place outside the EU," the EU explained in a press statement. </p><p>"With the new rules, crypto-asset service providers will have to respect strong requirements to protect consumers’ wallets and become liable in case they lose investors’ crypto-assets."</p><p>As member states of the EU already have their national legislation for crypto-assets, MiCA will bring more clarity to the EU, the political union added.</p> <p> </p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com/cryptocu...to-assets/