1. FSMA and virtual assets
Meet Up on Crypto evolution
and VASP impact
April, 21st 2022
2. FSMA and Virtual Assets
• The FSMA
• A changing world
• Current harmonized regime
• Specific provision as regards ATMs
• The Royal Decree of 8 February 2022
• The FSMA supervisory action
• Conclusion
2
Meet Up – 21 April 2022
4. NBB
Essential task for prudential supervision:
• Preserve and promote the good health of the financial sector and important
actors within it
Surveillance of financial stability
Prudential supervision (micro and macro)
FSMA
Its essential tasks consist, namely of:
• Supervision of financial products and surveillance of financial markets
(acquisitions, initial public offerings, supervision of the quality of the
information published by listed companies, combating market abuse and
insider dealing, etc.)
• Promoting the proper provision of financial services
• Contributing to protecting the interests of financial consumers
Interaction and collaboration
The FSMA
Division of powers NBB/FSMA
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8. Financial education
• Coordination of various educational programs
• Campaigns to promote financial knowledge
• Development of various tools (website, etc.)
• Wikifin Lab
The FSMA
Areas of Competence of the FSMA
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9. • Virtual assets and Blockchain technology are parts of the financial
innovation
‐ Policy-makers and supervisors should give support to innovation if it improves
financial processes and financial services to consumers
• The legislators should be able to give to this emerging industry the
appropriate legislative framework to ensure its development
according to robust quality standards as those applying to traditional
finance
‐ legislative action should be taken at international level (European) taking into
account the strong cross-border dimension of this industry
• The supervisors must ensure the compliance with the existing
legislation(s) and, when needed, take enforcement actions
A changing world
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10. • Obvious AML/CFT risks are identified accross the world as regards the
crypto assets service providers
• Mala Fide persons misuse the blockchain in order to transfer
anonymously virtual assets either
‐ by performing person to person transactions or
‐ by using services providers
• An appropriate answer must be found to assess this issue, with all key
stakeholders : Service Providers, Legislators, Supervisors, Financial
Intelligence Units, Law Enforcement Authorities
A changing world
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11. • Regulate all virtual asset service providers is very challenging, taking
into account the speed of innovation within this sector
• However, and taking into account the high risk profile of the virtual
assets sector, it is of paramount importance that
‐ consumers know whether or not they are entering into a business relationship
with a regulated entity
‐ in all circumstances, consumers are appropriately informed of the risk taken in
investing in virtual assets.
A changing world
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12. • Two types of virtual assets service providers (VASPs) are submitted to
the AML/CFT legislation, according to Directive 2015/849 (modified
by the Directive 2018/843):
‐ the providers engaged in exchange services between virtual currencies and
fiat currencies
‐ the custodian of wallet providers
• Transposition in Belgian legislation by the Law of 18 September 2017
(modified by the Law of 1 February 2022)
• The above mentioned service providers who are established in
Belgium are submitted to the Belgian Law
• The current competences of the FSMA as regards the VASPs come
from the European Directive
Current harmonized regime
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13. • ATMs (exchange of crypto currencies versus fiat currencies) are
identified accross the european jurisdictions as a specific AML/CFT
risk factor
• The law of 18 September 2017 provides that service providers
operating ATMs in Belgium are deemed to be established in Belgium.
Therefore, they are submitted to the AML/CFT legislation.
Specific provision as regards ATMs
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14. • The registration requirements applying to those two types of VASPs
(the providers engaged in exchange services between virtual currencies and fiat
currencies and the custodian of wallet providers) are laid down in the Royal
Decree of 8 February 2022
• The FSMA is the competent authority in Belgium to register and
supervise those VASPs
‐ Key registration requirements
‐ compliance with AML/CFT legislation
‐ fit & proper of the executive management
‐ assessment of the shareholders
‐ adequate & appropriate organisation
‐ On-going compliance with the registration requirements
The Royal Decree of 8 February 2022
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15. • Short-term priorities will be granted to the registration files
‐ proportionality may never be invoked to not comply with key legal requirements
‐ the requirements are the same for small entities as for medium & big ones
• As regards AML/CFT requirements, specific attention will be given to
the client’s identification process and to the permanent monitoring of
transactions
• The AML Compliance Officer within the service provider plays a key role
in supporting the supervisory action and in rising awareness as regards
AML/CFT risks
‐ the FSMA expects all registered service providers to implement strong internal
governance standards and keep them up to date.
FSMA supervisory action
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16. • The harmonized area as regards the regulation of virtual assets in
Europe is currently limited to the providers engaged in exchange
services between virtual currencies and fiat currencies and the
custodian of wallet providers
• The current national VASPs regime does not extend this area
• MiCA Regulation will extend considerably the European regulated
area (in terms of types of services and of virtual assets, as well as in
terms of requirements applying to the service providers) and could
have an impact on the competences of the FSMA
• The FSMA plays and will continue to play its role within the scope of
the competences conferred by the Belgian legislator
Conclusion
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