Belgium Crypto: FSMA Regulation & Tax #56

Country facts

Belgium crypto score

Trade and store crypto

FSMA oversight, 33% miscellaneous income rate, and professional trading classification

Belgium is keen to adopt blockchain technology, and its banking sector wants to harness the consumer demand for crypto trading and investment. One of its largest banking and insurance groups is also exploring a cryptocurrency for internal use and there is growing crypto retail acceptance.

There is no specific legislation on crypto investments in Belgium, leaving them to fall within the existing legal framework that applies to securities and investments. In other words, the existing framework that applies to financial investment products will largely apply to cryptocurrencies and related services within the crypto space.

Bitcoin trading & crypto law in Belgium

Legal – existing crypto legislation

Belgium recognizes bitcoin and other cryptocurrencies and, aside from the concerns that all governments have with regard to the prevention of money laundering, terrorism, and fraud, Belgium is ambivalent about the growth and development of digital currencies. The leading Belgium crypto exchanges that operate there are required to abide by the regulations that apply to the financial sector generally.

Legal – forthcoming crypto legislation

Many regulations and directives are thrown up by the European Parliament with individual countries adapting and debating legislation on a national basis. At present, the Belgian Government’s more recent regulations on private individuals as well as businesses operating with cryptocurrencies are looking to achieve a stricter regulatory framework.

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Bitcoin tax in Belgium

Gifting crypto

You won’t be able to reduce your tax by gifting your cryptocurrency. Whatever gain you have made on it will be taxable up to the point at which you gift it whether to an individual, friend, etc, or a recognized charitable organization. Some exchanges – and plenty of tax specialists – can offer advice on gifting your cryptocurrency.

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Crypto regulation in Belgium

Security

As with any crypto dealings you are considering it’s always a good idea to check these levels of security, protection and insurance any exchange can offer you. Belgian-based exchanges may offer more recourse to action if things go wrong, and a more immediate level of customer support, whilst overseas-based exchanges can provide a wider choice of services and perhaps greater speeds of affiliation and transaction. In all cases, you’ll have to report your identity credentials and trading details.

Transparency

In line with most Government regulatory bodies, the Belgian authorities can request information from crypto exchanges and expect compliance with their laws. You’ll need to provide your personal details and proof of ID – so you can forget about the myth of anonymity that surrounds cryptocurrency.