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CMS Expert Guide to Crypto Regulation in Belgium

Table of contents
  1.  How is crypto regulated?
  2.  Are the following activities regulated or unregulated in your jurisdiction? ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking
  3. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?
  4. What would be the approximate overall cost of obtaining a licence?
  5. What is the probability (%) of success in obtaining a licence?
  6. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence
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Disclaimer: This chapter was last updated on 5 September 2023 and does not reflect any subsequent developments. The information provided is intended for general informational purposes and should not be construed as legal advice.

1. How is crypto regulated?

AML RegulationFinancial Services Regulation

The Fifth Money Laundering Directive (5MLD) extended the Fourth Money Laundering Directive (4MLD) regime to “providers engaged in exchange services between virtual and fiat currencies” and to “custodian wallet providers”.

5MLD has been transposed into Belgian law through amendments to the Law made on 18 September 2017 on the prevention of money laundering and terrorism financing and restricting the use of cash (AML Law), and via a Royal Decree of 8 February 2022 on the status and supervision of exchange services between virtual currencies and fiduciary currencies, and custodian wallet providers (RD).

Virtual asset service providers with a Belgian fixed establishment are subject to registration with, and the supervision of the Belgian Financial Services and Markets Authority (FSMA).

There are no specific Financial Services Regulations regarding virtual assets and virtual assets services. Virtual assets might, depending on their features, be characterized as financial instruments (therefore falling under the scope of broader financial regulations such as MiFID, Prospectus, AIFM, etc). This needs to be examined on a case-by-case basis.

2. Are the following activities regulated or unregulated in your jurisdiction? ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking

AML RegulationFinancial Services Regulation
2.1.1 Exchange (buy/sell)

Yes.

N/A
2.1.2 Custody (hold) 

Yes.

N/A
2.1.3 Borrowing/lending

no (but could potentially fall under consumer credit regulations)

N/A
2.1.4 Yield/staking

No.

The above is only required for Belgian based providers (i.e. Belgian companies or EU companies with an establishment or ATM in Belgium). A Belgian based provider will need to demonstrate that it has policies, controls and procedures in place to effectively manage money laundering and terrorist financing risks proportionate to the size and nature of the business’ activities.

EU providers without Belgian establishment do not need to obtain a Belgian licence. Non-EU providers are prohibited to target the Belgian market.

N/A

3. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?

AML RegulationFinancial Services Regulation
Approximately between 3 and 5 months. (The regulator must take a view within 3 months from receipt of a complete file).N/A

4. What would be the approximate overall cost of obtaining a licence?

AML RegulationFinancial Services Regulation
Regulator fees amount to EUR 8,000 for an exchange licence and (another) EUR 8,000 for custody licence.N/A

5. What is the probability (%) of success in obtaining a licence?

AML RegulationFinancial Services Regulation
If the applicant has strong AML processes, the probability to obtain a licence is high.N/A

6. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence

AML RegulationFinancial Services Regulation
If a Belgian licence is required, the central administration must be located in Belgium. The organisation must permit the virtual asset services provider to comply with all legal and regulatory obligations, and to manage all operational risks including a permanent, resilient and secured IT system.N/A

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Portrait ofBenoît Vandervelde
Benoît Vandervelde
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