The Belgian regulator is arguing against ETH, BTC and other currencies as securities by DailyCoin


The Belgian regulator is arguing against ETH, BTC and other currencies as securities
  • The Belgian Financial Services and Markets Authority (FSMA) said that crypto assets generated by computer code such as ETH and BTC are not securities.
  • The FSMA clarified that such cryptocurrencies may be subject to other types of regulations if they have payment or exchange features.
  • The FSMA also said that its step-by-step plan will provide guidance to the European Parliament’s Markets in Crypto Asset Regulation (MiCA) until its adoption.

The Belgian financial regulator FSMA has presented arguments as to why it believes that (ETH), (BTC) and other decentralized crypto assets are not securities.

The FSMA’s main argument is called the phased plan, which is outlined in a document released on November 22. It is primarily based on the idea that crypto assets that are generated by computer code, such as ETH or BTC, do not constitute securities.

“If there is no issuer, such as in cases where the instruments are generated by computer code and not in execution of an agreement between the issuer and the investor (for example, Bitcoin or Ether), then in principle, the prospectus regulation, the offering prospectus stated in Document that the law and the MiFID code of conduct do not apply.” However, the FSMA has made it clear that such assets can be subject to other types of regulations. This is provided that they feature payment or exchange functions.

“However, if the instrument has a payment or exchange function, other regulations may apply to the instrument or to persons providing certain services related to these instruments,” the statement reads. Under the FSMA’s tiered scheme, crypto assets issued by an individual or entity and incorporated into “instruments” are likely to be classified as securities.

“If assets are consolidated into an instrument, it is possible to distinguish between a situation in which the instrument represents a right in relation to an issuer and/or another person (such as a guarantor) and a situation in which this is not the case,” the FSMA said. The FSMA also said that qualifying an object as a financial or financial instrument Or investment “does not depend on the technology used.”

The FSMA’s tiered plan will provide guidance to the European Parliament’s Markets in Crypto Asset Regulation (MiCA) until its adoption. MiCA is still in the works and is expected to be ratified at the beginning of 2023. This means that the regulations will come into force in 2024.

The FSMA’s arguments about ETH and BTC not being securities contradict what the SEC chairman believes. While Gary Gensler believes that BTC is a commodity, he has said many times that ETH is a security. This is especially since it has implemented a Proof of Stake consensus mechanism.

This is in contrast to the views of US CFTC Chairman Rustin Behnam. He has repeatedly said that both ETH and BTC are commodities from his point of view.

on the flip side

  • It is unclear whether lawmakers would accept the FSMA’s view and include it in the MiCA.

Why should you bother

Regulations for the cryptocurrency industry are coming, whether one likes it or not. Labeling Ethereum (ETH) and Bitcoin (BTC) commodities instead of securities would be a huge win for the crypto community.

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See the original on the Daily Queen



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