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Retail_Trading_Status

Allowed-Regulated Unknown
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#438
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2025-06-26 13:08
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Executive Summary

In Belgium, individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, subject to a growing body of regulations. The Financial Services and Markets Authority (FSMA) and the National Bank of Belgium (NBB) are the primary regulators, focusing on Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and consumer protection. Key legislation includes the transposition of the EU's Fifth Anti-Money Laundering Directive (AMLD5) and the EU's Markets in Crypto-Assets Regulation (MiCA). Cryptocurrencies are not considered legal tender, and the regulatory framework aims to mitigate risks while allowing trading.

Key Pillars

The primary regulator is the Financial Services and Markets Authority (FSMA), along with the National Bank of Belgium (NBB). Core compliance requirements include Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, with Virtual Asset Service Providers (VASPs) needing to register with the FSMA and conduct Know Your Customer (KYC) and Customer Due Diligence (CDD). Licensing or registration is required for VASPs operating in Belgium.

Landmark Laws

  1. EU's Fifth Anti-Money Laundering Directive (AMLD5): Transposed into Belgian national law, imposing obligations on VASPs for AML/CFT.
  2. Law of 18 September 2017 on the prevention of money laundering and terrorist financing (as amended): Primary legal basis for AML/CFT requirements.
  3. Royal Decree of 8 February 2022: Specifies rules and conditions for registration and supervision of VASPs by the FSMA.
  4. FSMA Regulation approved by Royal Decree on 5 January 2023: Targets advertising related to the marketing of virtual currencies to consumers, mandating clear risk warnings.
  5. EU's Markets in Crypto-Assets Regulation (MiCA): Became directly applicable on December 30, 2024, providing a harmonized regulatory framework for crypto-assets.

Considerations

Cryptocurrencies are not considered legal tender in Belgium. Gains from cryptocurrency transactions by private individuals are generally subject to a 33% tax on speculative gains. The FSMA and NBB have consistently issued warnings about the risks associated with investing in cryptocurrencies, emphasizing volatility and the potential for fraud. AML/KYC is mandatory for transactions over €1,000.

Notes

VASPs compliant with national law before MiCA's application can operate under a transitional period until July 1, 2026. The FSMA indicated it could not grant registrations under the pre-MiCA regime because no complete files demonstrating compliance were submitted before the regime's expiry. There is ongoing discussion about potential changes to capital gains taxation, possibly a 10% tax on financial assets including crypto. Exchange transactions in Bitcoin and other cryptocurrencies are exempt from VAT.

Detailed Explanation

Individual citizens and residents in Belgium are legally permitted to buy, sell, and hold cryptocurrencies. However, this activity is subject to specific regulations concerning Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), consumer protection, and the operations of Virtual Asset Service Providers (VASPs). Cryptocurrencies are not considered legal tender, but their trading is not prohibited for retail investors.

Belgium initially adopted a cautious approach, treating cryptocurrencies under existing financial instrument frameworks. The Financial Services and Markets Authority (FSMA) and the National Bank of Belgium (NBB) have since created a more defined regulatory environment, influenced by European Union (EU) directives.

Key regulatory aspects include AML/CFT regulations, where Belgium transposed the EU's Fifth Anti-Money Laundering Directive (AMLD5) into national law, imposing obligations on VASPs to register with the FSMA. These entities must comply with KYC, CDD, and transaction monitoring, as mandated by the Law of 18 September 2017 and a Royal Decree of 8 February 2022. VASPs established in Belgium must register with the FSMA; third-country service providers are generally prohibited unless they establish a presence within Belgium or another EEA jurisdiction.

The FSMA has powers to impose restrictive conditions on the commercialization of virtual currencies. An FSMA Regulation approved by Royal Decree on 5 January 2023 targets advertising, mandating risk warnings like 'Virtual currency, real risks. In crypto, only the risk is guaranteed.' Marketing of certain derivative products based on virtual currencies to retail investors is prohibited. The EU's Markets in Crypto-Assets Regulation (MiCA) became directly applicable on December 30, 2024, providing a harmonized regulatory framework. VASPs compliant with national law before MiCA's application can operate under a transitional period until July 1, 2026. The FSMA indicated it could not grant registrations under the pre-MiCA regime due to incomplete applications.

Gains from cryptocurrency transactions by private individuals are generally subject to a 33% tax on speculative gains, treated as 'miscellaneous income.' However, if crypto transactions are part of 'normal management of private assets' without speculative intent, they may be tax-exempt. Professional traders are subject to progressive income tax (25-50%) or corporate tax (20-25%). There is ongoing discussion about a possible 10% tax on financial assets, including crypto. Exchange transactions in Bitcoin and other cryptocurrencies are exempt from VAT.

The FSMA and NBB have consistently warned consumers about the risks associated with cryptocurrencies. AML/KYC is mandatory for transactions over €1,000. The FSMA's main regulatory tool is the FSMA Regulation of 5 January 2023, placing restrictive conditions on the distribution of virtual currencies to consumers as approved by the Royal Decree of 8 February 2023.

Summary Points

Retail Cryptocurrency Trading Status in Belgium: Regulatory Analysis (2025)

Overall Status: Allowed-Regulated. Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, subject to regulations.

1. Key Regulatory Bodies and Their Roles:

  • Financial Services and Markets Authority (FSMA):
    • Primary regulator for VASPs.
    • Responsible for VASP registration and supervision.
    • Enforces AML/CFT regulations.
    • Imposes restrictions on the commercialization of virtual currencies to non-professional customers.
    • Supervises compliance with marketing regulations.
  • National Bank of Belgium (NBB):
    • Works in conjunction with the FSMA on financial stability and oversight.
    • Issues warnings to consumers about the risks of cryptocurrency investments.

2. Important Legislation and Regulations:

  • EU's Markets in Crypto-Assets Regulation (MiCA):
    • Directly applicable in Belgium since December 30, 2024.
    • Provides a harmonized regulatory framework for crypto-assets across the EU.
    • Covers offering of tokens, provision of crypto-asset services, and market abuse prevention.
  • Law of 18 September 2017 on the prevention of money laundering and terrorist financing (as amended):
    • Transposes EU's Fifth Anti-Money Laundering Directive (AMLD5) into Belgian law.
    • Forms the primary legal basis for AML/CFT requirements.
  • Royal Decree of 8 February 2022:
    • Specifies the rules and conditions for the registration and supervision of VASPs by the FSMA.
  • FSMA Regulation (approved by Royal Decree on 5 January 2023):
    • Targets advertising related to the marketing of virtual currencies to consumers.
    • Mandates clear risk warnings in advertisements.

3. Requirements for Compliance:

  • VASP Registration:
    • Providers of exchange services between virtual currencies and fiat currencies, and custodian wallet providers established in Belgium, must register with the FSMA.
    • Third-country service providers (outside EEA) are generally prohibited unless they establish a presence within Belgium or another EEA jurisdiction.
  • AML/CFT Compliance:
    • VASPs must comply with comprehensive AML/CFT provisions.
    • Includes Know Your Customer (KYC) checks, customer due diligence (CDD), and transaction monitoring.
  • MiCA Compliance:
    • VASPs must comply with MiCA regulations, including those related to offering tokens, providing crypto-asset services, and preventing market abuse.
  • Marketing Regulations:
    • Advertisements must include the warning: "Virtual currency, real risks. In crypto, only the risk is guaranteed."
    • More extensive warnings about the risks associated with such assets must also be included.

4. Notable Restrictions or Limitations:

  • Marketing Restrictions: The FSMA can impose restrictive conditions on the commercialization of virtual currencies to non-professional customers.
  • Derivative Product Restrictions: The marketing of certain derivative products based on virtual currencies to retail investors is prohibited due to their high-risk nature.
  • Third-Country VASP Restrictions: Third-country VASPs (outside the EEA) are generally prohibited from offering services in Belgium unless they establish a presence within Belgium or another EEA jurisdiction.

5. Taxation:

  • Speculative Gains: Gains from cryptocurrency transactions by private individuals are generally subject to a 33% tax on speculative gains, treated as "miscellaneous income".
  • Normal Management of Private Assets: If crypto transactions are considered part of the "normal management of private assets" without speculative intent, they may be tax-exempt.
  • Professional Traders: Subject to progressive income tax (25-50%) or corporate tax (20-25%) on their crypto gains.
  • VAT: Exchange transactions in Bitcoin and other cryptocurrencies are exempt from VAT.
  • Potential Future Changes: Ongoing discussion about potential changes to capital gains taxation, with some sources mentioning a possible 10% tax on financial assets, including crypto, in the future.

6. Recent Developments or Changes:

  • MiCA Implementation (December 30, 2024): Significant impact on the Belgian crypto landscape, providing a harmonized regulatory framework.
  • FSMA Regulation on Marketing (January 5, 2023): Introduced specific rules governing the marketing of virtual currencies to Belgian consumers.
  • VASP Registration Requirement (May 2022): VASPs providing exchange and custody services must register with the FSMA.
  • Transitional Period for MiCA Compliance: VASPs compliant with national law before MiCA's full application can continue operating under a transitional period until July 1, 2026, or until they receive/are refused authorization under MiCA.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Belgium

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Retail_Trading_Status

Status Value: Allowed-Regulated

Narrative Explanation:

Individual citizens and residents in Belgium are legally permitted to buy, sell, and hold cryptocurrencies. However, this activity is subject to a growing body of specific regulations, particularly concerning Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), consumer protection, and the operations of Virtual Asset Service Providers (VASPs). While cryptocurrencies are not considered legal tender in Belgium, their trading is not prohibited for retail investors.

Historically, Belgium initially adopted a cautious, hands-off approach with no specific laws targeting cryptocurrencies, treating them broadly under existing financial instrument frameworks. Over time, and in response to the evolving crypto landscape and European Union (EU) directives, Belgian regulators, primarily the Financial Services and Markets Authority (FSMA) and the National Bank of Belgium (NBB), have taken steps to create a more defined regulatory environment.

Key aspects of the Belgian regulatory framework for retail cryptocurrency trading include:

  1. AML/CFT Regulations: Belgium has transposed the EU's Fifth Anti-Money Laundering Directive (AMLD5) into its national law. This imposes obligations on VASPs, including cryptocurrency exchanges and custodian wallet providers, to register with the FSMA. These entities are required to comply with comprehensive AML/CFT provisions, which include conducting Know Your Customer (KYC) checks, customer due diligence (CDD), and transaction monitoring. The Law of 18 September 2017 on the prevention of money laundering and terrorist financing, as amended, forms the primary legal basis for these requirements. A Royal Decree of 8 February 2022 further specifies the rules and conditions for the registration and supervision of VASPs by the FSMA.

  2. VASP Registration and Supervision: Providers of exchange services between virtual currencies and fiat currencies, as well as custodian wallet providers established in Belgium, must register with the FSMA. Third-country service providers (those outside the EEA) are generally prohibited from offering such services in Belgium unless they establish a presence within Belgium or another EEA jurisdiction and operate on a cross-border basis.

  3. Consumer Protection and Marketing: The FSMA has been granted powers to impose restrictive conditions on the commercialization of virtual currencies to non-professional customers and to supervise compliance with these requirements. A notable FSMA Regulation, approved by a Royal Decree on 5 January 2023, specifically targets advertising related to the marketing of virtual currencies to consumers. This regulation mandates clear risk warnings in advertisements, such as "Virtual currency, real risks. In crypto, only the risk is guaranteed." Furthermore, the marketing of certain derivative products based on virtual currencies to retail investors is prohibited due to their high-risk nature.

  4. Influence of EU Regulations (MiCA): The EU's Markets in Crypto-Assets Regulation (MiCA) became directly applicable in all EU member states, including Belgium, from December 30, 2024. MiCA provides a harmonized regulatory framework for crypto-assets, covering aspects like the offering of tokens to the public, the provision of crypto-asset services, and market abuse prevention. This EU-level regulation significantly shapes the Belgian crypto landscape, aiming to enhance investor protection and legal certainty. VASPs that were compliant with national law before MiCA's full application can continue operating under a transitional period until July 1, 2026, or until they receive/are refused authorization under MiCA. The FSMA has indicated that it was unable to grant any registrations under the pre-MiCA national regime (Royal Decree of 8 February 2022) as no complete file attesting to an applicant's ability to comply with all legal and regulatory conditions had been submitted prior to that regime's expiry.

  5. Taxation: Gains from cryptocurrency transactions by private individuals are generally subject to a 33% tax on speculative gains, treated as "miscellaneous income". However, if crypto transactions are considered part of the "normal management of private assets" without speculative intent, they may be tax-exempt. Professional traders are subject to progressive income tax (25-50%) or corporate tax (20-25%) on their crypto gains. There is ongoing discussion about potential changes to capital gains taxation, with some sources mentioning a possible 10% tax on financial assets, including crypto, in the future, though details and confirmation are pending. Exchange transactions in Bitcoin and other cryptocurrencies are exempt from VAT.

The FSMA and NBB have consistently issued warnings to consumers about the risks associated with investing in cryptocurrencies, emphasizing their volatility, the potential for fraud, and the lack of comprehensive guarantees or protections typically associated with traditional financial products. Despite these warnings, the legal framework clearly allows for trading while aiming to mitigate risks through regulation.

Relevant Text Excerpts and Sources:

  • FSMA on VASP Registration and AMLD5 Implementation: "Belgium has finalized the implementation of the fifth Anti-money Laundering Directive (AMLDV) in Belgian law by introducing new requirements around the provision of exchange and custody services for virtual currencies... providers of exchange services between virtual currencies and fiat currencies and custodian wallet providers of virtual currencies established in Belgium (including through an ATM) that wish to provide their services in Belgium are required, since May 2022, to register with the FSMA as a VASP in advance."

    • Source: Elliptic, "Belgium Country Guide", September 26, 2023.
    • URL: https://www.elliptic.co/countries/belgium (Note: While the link provided in the search result leads to a Google redirect, the source is Elliptic. The direct link to Elliptic's country guides might require navigation on their website.)

  • FSMA on Marketing Restrictions: "The FSMA recently used these powers and introduced a new regulation on marketing virtual currencies to consumers. The regulation was approved by a Royal Decree on 5 January 2023 (the “FSMA Regulation”). The FSMA Regulation targets advertising related to the marketing in Belgium of virtual currencies to customers..."

  • Legal Status and MiCA Compliance: "Legal to buy, sell, and trade – Not banned, but not legal tender. Exchanges & custodians must register with FSMA. MiCA compliance is mandatory for stablecoins and trading platforms."

  • AML/KYC Requirements: "All virtual asset service providers shall register with FSMA and conform to MiCA regulations, which also include stringent AML/KYC requirements." "AML/KYC – Mandatory for transactions over €1,000."

  • FSMA on MiCA Implementation: "Since 30 December 2024, the European Markets in Crypto-Assets Regulation (MiCA) is directly applicable in all European Union member states, without needing to be transposed into national law... In accordance with the transitional period provided for, crypto-asset service providers (“CASPs”) that provided their services in accordance with the national law of an EU member state before 30 December 2024 may continue to do so in that member state until 1 July 2026 or until they are granted or refused an authorization, whichever is sooner."

  • Taxation of Crypto Gains: "In Belgium, there is no specific capital gains tax law that distinguishes between long-term and short-term gains for cryptocurrencies. Instead, tax authorities apply a flat tax rate of 33% to all gains derived from crypto transactions." "Private investors pay a tax of 33% on speculative gains, whereas professionals would be subject to progressive income tax (25-50%) or corporate tax (20-25%)."

  • FSMA Warning on Marketing: "Currently, the FSMA's main regulatory tool is a set of rules governing the marketing of virtual currencies to Belgian consumers set out in the FSMA Regulation of 5 January 2023 placing restrictive conditions on the distribution of virtual currencies to consumers (as approved by the Royal Decree of 8 February 2023). In short, this Regulation provides that any advertisement must include the short warning: 'Virtual currency, real risks. In crypto, only the risk is guaranteed,' along with a more extensive warning about the risks associated with such assets."

This comprehensive regulatory approach, combining national legislation with overarching EU directives like MiCA, clearly places Belgium in the "Allowed-Regulated" category for retail cryptocurrency trading.

Web Sources (18)

Sources discovered via web search grounding

Search queries used (8)
  • retail cryptocurrency trading regulations Belgium 2024 2025
  • FSMA cryptocurrency regulations Belgium
  • Belgium crypto KYC AML requirements
  • Legal status of cryptocurrency in Belgium for individuals
  • Belgian government statements on cryptocurrency trading
  • Taxation of cryptocurrency in Belgium for retail investors
  • Are crypto exchanges licensed in Belgium?
  • History of cryptocurrency regulation in Belgium
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