FSMA Introduces Rigid Crypto Company Guidelines
The Financial Services and Markets Authority (FSMA) of Belgium has introduced the crypto regulatory rules. These guidelines force all crypto companies to get registered with the FSMA , including all wallet providers as well as all digital currency exchanges. The rule has been in effect since May 2nd.
Furthermore, the regulator gives existing providers of crypto products and services a deadline for these firms to notify the regulator of their activities- July 1st of this year. Meanwhile, the companies must also apply for a registration with the FSMA by September 1st. Any failure to do so, or to fail a compliance detail can lead to jail time of up to one year and a fine of $10 000.
These new rules are a part of Europe's greater effort to put into action the Fifth Anti-Money Laundering Directive which requires all crypto companies to report suspicious activates to their local authorities. One of these entities is the FCA which has already imposed hefty restrictions on UK crypto businesses.
FSMA is one of the most authoritative regulators in the world, as it has imposed a complete ban on all CFDs trading, making it one of the few in the world to have done so.