You can see the rules and regulations in other jurisdictions.
The Virtual Currency Exchange Services Act prohibits third-country virtual currency exchange and custodial wallet providers that are not registered with the FSMA from providing services in Belgium. The FSMA, as well as the NBB, has issued documents such as regulations, communications and press releases and warnings pertaining to digital currencies or associated phenomena. These texts constitute the only official set of guidelines that address tokens and cryptocurrencies in Belgium.1
At a meeting held on 18 June 2021, the Council of Ministers approved a preliminary draft royal decree concerning the status and supervision of providers of virtual currency services based in Belgium. This draft intends to lay down regulations for registration with the FSMA, along with the conditions for exercising these activities and their monitoring. To be eligible for registration, applicants are required to demonstrate expertise, professional reliability and a lack of professional sanctions; as well as providing assurance that the company is being managed effectively and prudently. Providers must also comply with all relevant provisions in the AML Act at all times. The draft has been referred to the Council of State for consultation but is not currently available to public view.2
The Virtual Currency Exchange Services Act entered into force on 21 February 2022, amending the AML Act to address the status and supervision of service providers for exchange between virtual and fiat currencies.3
Virtual Currency Exchange Services Act prohibits third-country (i.e., non-European Economic Area) virtual currency exchanges and custodial wallet providers from offering their services in Belgium if they are not registered with the FSMA. If they do, they may be imprisoned (one month to one year) or fined (between €400 and €80,000). It also brings all ATMs on Belgian territory that allow virtual currency exchange against fiat currencies under the FSMA's supervision. The parliamentary works do not define what it means for a third-country service provider to offer services in Belgium. In general, the Belgian authorities accept passive servicing in financial services matters, meaning that a company is not presumed to offer its services in Belgium if it does not actively solicit orders from customers in Belgium through remote marketing and sales techniques or advertising. Existing clients are usually also allowed passive service. Belgium's stance towards crypto exchanges and custodial wallets is yet to be seen. Parliamentary talks have also highlighted issues in enforcing sanctions beyond its borders; criminal penalties intrinsic in Belgian law would not be effective beyond the reach of the country if no cooperation comes from foreign entities. A similar arrangement exists in neighbouring Netherlands, but that too has yet to be put into action.3
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