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.
The FSMA said it had launched a consultation on the draft on Tuesday. The consultation is to be wrapped up on July 31.
The Belgian agency said the consultation is open to all players in the country’s financial sector and investors’ representatives.
The supervisory authority further explained that the action is a response to the questions it regularly receives about the classification of cryptocurrency assets.
“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.
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.
However, it pointed out that the measure will not address all potential classifications.
The MiCA Framework
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.
MiCA seeks to protect investors and promote financial stability while also allowing innovation and fostering the attractiveness of Europe’s crypto-asset sector.
“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.
"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."
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.
