The Legal Status of Cryptocurrencies in the world: Belgium

Belgium is the cradle of European law therefore it doesn’t come as a surprise thatBelgian regulators are very aggressive on cryptocurrencies.

At the same time, we were not able to find information about any special legislation that defines and regulates cryptocurrencies. Currently, cryptocurrency is not recognized in Belgium as a currency or means of payment.

Let’s go through the most interesting statements of the Belgian leadership from the very beginning.

In 2013, The Belgian Finance Minister, in response to a question by a Belgian senator, stated in July 2013 that while bitcoin seems to be somewhat problematic as a tool for money laundering and other illegal activities, such problems should not be overstated. Well, it’s a pretty sensible statement. However, sensible statements end up right here and welcome to the world of “crypto criticism” from Belgian officials!

In January 2014, the Belgian National Bank (Banque Nationale de Belgique, BNB) and the Financial Services and Markets Authority (Autorité des services et marchés financiers, FSMA) issued a joint press release warning consumers about the risks associated with cryptocurrencies. It was emphasized that cryptocurrencies are not a legal tender and they are not fully regulated by any of the regulatory authorities.

In April 2017, Belgian Minister of Justice, Koen Geens announced that he plans to establish a legal framework for cryptocurrencies. By this framework he generally meant tightening of the control over exchange transactions and legal regulation for cryptocurrency withdrawals in lawsuits. He has also expressed a wish to find ways to avoid the anonymity of cryptocurrencies. These initiatives have been criticized by experts.

A year later, De Standaard and Het Nieuwsblad published articles stating that Belgian tax authorities have become more interested in citizens investing in cryptocurrencies. Every Belgian working on the cryptocurrency markets must pay 33% income tax even though bitcoin and other cryptocurrencies are not regulated in the country. For companies, such a tax can reach up to 50%. However, it turned out that catching violators is not that easy because most transactions are carried out on trading platforms registered abroad.

And the latest statement made by the chairman of the Financial Services and Markets Office of Belgium FSMA, Jean-Paul Serve, and dated February 10, is a cherry on the cake. During his speech in parliament, he asked the country’s leadership to establish the rules governing cryptocurrencies and related tools.

There is a feeling that the Belgian leadership has a fierce dislike for cryptocurrencies and is merely not able to restrain it, criticizing and coming at the crypto traders. However, the government does not take special regulatory measures. Why is it so?