The FSMA Hopes to Introduce Crypro Regulations to Counter Illegal Transactions

News / 11.02.2020

A recent report reveals that the Financial Services and Markets Authority (FSMA) in Belgium wants to ensure that digital currencies undergo government regulations. 

The FSMA Chairman, Jean-Paul Servais, insinuated that Belgium’s lawmakers should develop a legal guide to control the purchase, sale, and use of digital currencies. These guidelines are not just to guide digital currencies but any other financial products.  

Servais’ remarks came on February 10 in a senate hearing. He explained that it’s time for the Belgian government to address the robustly growing cryptocurrency industry. He even mentioned some countries which have strict policies against crypto assets, including banning. 

Mr. Servais also said the crypto market has numerous digital currencies, which have garnered over $320 billion in market capitalization. However, he said that there might be an increase in fraudulent activities, mainly if the government does not impose restricting the crypto movement. 

Among the issues that lead to Servais and FSMA is the fact that crypto-assets are not traceable. Additionally, BTC and other crypto assets are most famous in cybercrime, they do not leave any traces, and they are present almost everywhere on the dark web. 

There are increasing BTC ATMs and vending machines in Belgium, and as such, Servais mentioned some warnings from financial experts and economists regarding the crypto economy growth. 

According to the FSMA resolution, the chairman stated the necessity of a legal framework to control virtual money and other products associated with the digital economy. The main purpose is to protect consumers and reduce the use of crypto assets in criminal activities. 

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A creative writer in the field of content writing for the past 7 years. Iulian is passionate about his work and his interest in areas such as technology, travel, sports, literature and gastronomy have aided him to the research quality in articles that reflect these themes. Recently, he discovered the Bitcoin and the blockchain technology and he’s a big fan now.