Belgium FSMA Suggests Crypto Regulations to Curb Fraudulent Activities

News / 11.02.2020

Recently, a report has revealed the efforts of Belgium’s Financial Services and Markets Authority (FSMA) to ensure that the government starts regulating digital currencies.

According to the chairman of the financial agency, Jean-Paul Servais, Belgium’s lawmakers need to come up with a legal framework to guide those who sell, buy, and use virtual currencies, as well as related financial products.

Servais spoke on February 10, during a Senate hearing. He noted that it is time for the government to address the cryptocurrency industry, which is experiencing remarkable growth. While speaking, he mentioned nations which have provided regulations or prohibited cryptocurrencies.

He said there are numerous digital currencies in the market with an aggregated value over $320 billion and fraudulent activities could increase if there are no regulations for cryptocurrencies.

FSMA said because cryptocurrencies are not traceable, Bitcoins and other virtual currencies are quite renowned when it comes to cybercrime; they are everywhere on darknet as they are useful for cybercrime without leaving traces.

Servais said more Bitcoin vending machines and ATMs continue to appear in Belgium, and he mentioned the warnings of economists as well as Nobel laureates regarding the rise of the cryptocurrency economy.

According to the resolution, it is necessary to establish a legal framework for virtual money and associated financial products for the protection of consumers and likewise to halt the utilization of this virtual currency to perpetrate criminal activities.

 

Source: Cryptopress.

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