Senator Jean-Paul Servais, the chairman of the Financial Services and Markets Authority (FSMA), announced during a Senate hearing in Belgium that FSMA had made strategic discussions with the government of Belgium concerning the imposition of regulatory measures on the use of digital currencies for transactions. The regulatory watchdog is planning to keep a check on the widescale adoption of cryptocurrencies in the country.
According to official reports, the leader urged the lawmakers to chalk out a systematic legal framework for the sale, purchase, and management of cryptocurrencies along with all related financial offerings. During his address, Jean-Paul mentioned the regulatory mechanism working in major countries like Russia, China, Argentina, and Algeria. He clarified that Belgium needs to draft out a well-defined regulatory system similar to the above-mentioned countries that have maintained a clear-cut attitude towards cryptocurrencies by either supporting them through a legal ecosystem or banning them completely.
Jean-Paul stated that the Belgian government has failed to cater to the requirements of the crypto industry that is being welcomed with open arms all around the world. At present, the virtual currencies are burgeoning at a fast pace with more than a thousand currencies ruling the marketspace, stated Paul-Jean. He added that this situation is creating an unfavorable ecosystem for the Belgium economy and is likely to pose a threat for the investors if not controlled on time.
“Due to their non-traceability, Bitcoins and other virtual currencies popular in the context of cybercrime ain’t ubiquitous on the darknet, since they can become cybercrime committed without leaving traces. A legal framework should be established without delay for virtual money and related financial products. It’ll help protect consumers and the use of this virtual currency for criminal objectives.” read the official resolution of the agency. The agency resolution also highlighted the warnings given by the economists and Nobel laureates from around the world regarding the fast boom of cryptocurrencies.
The resolution addressed a royal decree from 2014, which barred any professional solutions dealing with virtual currencies from offering to the retail investors.
This is not for the first time that the regulatory authorities of a country are showing their concerns towards crypto proliferation. In the past, a Switzerland-based regulatory body imposed a restriction on the amount of digital currency to be held by a person. Also, the Monetary Authority of Singapore recently unveiled new anti-money laundering and counter-terrorist financing rules and guidelines to keep a check on the crypto market.