You can see the rules and regulations in other jurisdictions.
On 3 April 2014, the FSMA issued the Regulation of the Financial Services and Markets Authority of 3 April 2014 prohibiting the marketing of certain financial products to non-professional clients (the Marketing Prohibition Regulation), which entered into force on 1 July 2014. The Regulation prohibits professional marketing in Belgium of financial products with a return that is directly or indirectly dependent on virtual money to one or more retail clients. 'Virtual money' is defined for the purposes of the Regulation as 'each form of non-regulated digital money without legal tender'. This definition comprises not only Bitcoin, but also other cryptocurrencies. The prohibition only applies in respect of derivatives of virtual money, not in respect of the virtual money itself.1
Aside from the Marketing Prohibition Regulation, no Belgian (hard) laws or regulations specifically target blockchains or cryptocurrencies. Therefore, any cryptocurrency, token or other asset created or transferred through distributed ledger technology, as well as any related services, must be analyzed from a legal and conceptual perspective. There is no material deviation from EU legislation in most Belgian financial laws.1
In a recent ruling, the Office for Advance Tax Rulings confirmed that all gains from investments in cryptocurrencies and ICOs made by Belgian companies are taxable, as well as all losses.1
Investments in cryptocurrencies by individuals are subject to general tax rules and depend on the facts and circumstances.1
A capital gain realised within the framework of one's professional activity will be taxed as professional income at progressive rates ranging between 25 and 50 per cent plus local charges. Capital gains on cryptocurrencies can be exempt from individual income taxes if the sale qualifies as a normal act of management if they are held as private assets. Capital gains will be taxed at 33 percent plus local charges if they are not taxable.1
It is possible to obtain legal certainty on the applicable tax treatment by requesting a ruling from the Office for Advance Tax Rulings. Recently, this service published a list of questions that should assist both the taxpayer and the tax authorities in determining the appropriate tax treatment.2
In regards to VAT, the European Court of Justice has ruled that non-traditional currencies are exempt from VAT in the same way as traditional currencies. This decision has been included in the Belgian VAT administration's administrative commentary without any notable remarks.1
Legal support for FinTech and Blockchain projects
We work for international SMEs, startups and Telco's
Participation as a lawyer at investment venture funds, leading venture M&A deals in IT, supporting iGaming and business assets
