Cryptocurrency companies operating in Belgium will need to apply for a license from the national financial oversight agency once the new Money Laundering Prevention (AML) regulations come into force.
The license applicant must show the Belgian Financial Services Markets Authority (FSMA) that he has sufficient capacity, consistency and solvency to operate the business.
As part of their plans, FSMA will impose a capital of at least € 50,000 ($ 53,000) and mandate a corporate structure for crypto-related businesses to register with national regulatory agencies.
The legal notice also states that the following services are subject to registration requirements: “A virtual asset service provider (VASP) who wants to provide an exchange service between cryptocurrencies and fiat currencies, or a storage wallet service. Providers already operating on May 1, 2022 by July 1, 2022. You must notify FSMA of your exercise of activity and apply for registration by September 1, 2022. “
When the new regulations come into force, crypto exchanges, wallet providers and crypto storage service providers operating in Belgium will need to register with financial regulators and prove that they meet AML requirements if they want to continue their business. there is.
AMLD5 Brings Cryptographic Business Within AML Rules
This rule is included in the implementation of the 5th Money Laundering Directive (AMD 5), which provides a broad definition of crypto assets and certifies them as “financial instruments”. Such a broad definition of financial instruments goes beyond cryptocurrencies and covers many related assets, including security tokens.
Under AMLD5, crypto exchanges and custodian wallet providers have been brought within the scope of EU money laundering prevention rules for the first time. The law imposes registration and customers due to the diligent requirements that force operators to disclose the trader’s identity and report suspicious activity.
The AMLD5 Regulation, which came into effect in January 2020, is a Pan-European Money Laundering Prevention Directive requiring Member States to implement it in national law. This law is noteworthy as it represents the EU’s first attempt to explicitly regulate cryptocurrency activity at the EU level.
Extending AML regulations to cryptocurrency activities has already been adopted in several countries around the world, including Australia and the United Kingdom, and is tracking the EU’s recent push to regulate this sector.
In addition, European regulators have united to pursue a stricter regulatory approach in case cryptocurrency companies seek permission to do business in blocks of 19 countries. They talked about the serious implications for financial stability if authorities lose control of the phenomenon and demand a common set of rules for crypto assets, but so far nothing has taken off properly.
The Belgian financial watchdog was keen to monitor the rampant internet-based cryptocurrency schemes operating in watchdog-controlled zones.
FSMA acts as a watchdog for Belgian financial transactions, securities and markets, overseeing various asset and compliance issues for traders and consumers. Today’s warning is the latest in an effort to “restrict companies engaged in fraud.”