Belgium

**Report: Retail Cryptocurrency Trading Status in Belgium**

**Date:** April 12, 2025

**Topic:** Retail_Trading_Status

**Description:** Assessment of the legal permissibility for individual citizens and residents in Belgium to buy, sell, and hold cryptocurrencies, detailing the surrounding regulatory environment.

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**1. Status:** `Allowed-Regulated`

**2. Narrative Explanation:**

Retail trading (buying, selling, holding) of cryptocurrencies by individuals in Belgium is **allowed**, but operates within a **regulated** environment. There is no outright ban preventing Belgian citizens and residents from participating in the crypto market. However, the activities surrounding crypto-assets, particularly those provided by intermediaries like exchanges and custodian wallet providers, are subject to significant regulation, primarily overseen by the Financial Services and Markets Authority (FSMA).

**Key Regulatory Aspects:**

*   **Legal Tender Status:** Cryptocurrencies are explicitly not considered legal tender in Belgium. Both the National Bank of Belgium (NBB) and the Minister of Finance have stated that crypto-assets do not fulfill the functions of money and granting them legal tender status would pose risks to monetary policy and financial stability [2, 18].
*   **AML/CFT Framework:** Belgium implemented the EU's 5th Anti-Money Laundering Directive (AMLD5) into national law (the AML Act of 18 September 2017, as amended) [2, 4, 7]. This brought Virtual Asset Service Providers (VASPs) – defined as providers of exchange services between virtual and fiat currencies, and custodian wallet providers – under the scope of AML/CFT regulations [2, 7, 13].
*   **VASP Registration:** Since May 1, 2022, VASPs established in Belgium (including through ATMs or branches) must register with the FSMA before commencing activities [2, 4, 11, 12, 13, 16]. This registration involves meeting specific conditions, including minimum capital requirements (€50,000 fully paid-up), having central administration in Belgium, ensuring management possesses appropriate expertise and professional repute, and complying fully with AML/CFT obligations (like KYC/Customer Due Diligence) [4, 7, 8, 11]. VASPs established in other EEA countries can operate cross-border without Belgian registration *unless* they have a physical presence (branch, ATM) in Belgium [4, 11, 12]. VASPs from outside the EEA (third countries) are prohibited from providing services in Belgium [4, 11, 13].
*   **MiCA Regulation:** The EU's Markets in Crypto-Assets (MiCA) Regulation (EU 2023/1114) became fully applicable across the EU, including Belgium, on December 30, 2024 [3, 9, 10, 20]. MiCA provides a harmonized framework for crypto-asset issuers and Crypto-Asset Service Providers (CASPs, the MiCA term for VASPs and similar entities), covering authorization, operation, investor protection, and market abuse prevention [3, 9, 20, 22]. MiCA is directly applicable, meaning it doesn't require transposition into national law [3].
    *   **MiCA Implementation Status:** While MiCA is legally in force, Belgium has reportedly faced delays in formally designating the national competent authority (expected to be the FSMA) and establishing the specific national procedures for CASP licensing under MiCA [5, 20]. However, the FSMA has stated that MiCA's direct applicability means there is nothing hindering CASP activity, and services legally provided before December 30, 2024, can continue [3]. CASPs from other EU states active in Belgium before MiCA can continue operating under transitional arrangements until July 1, 2026 [3, 5, 10]. Notably, the FSMA reported that no VASPs had successfully completed the pre-MiCA national registration process before it expired [3, 5, 10].
*   **Marketing and Advertising Rules:** The FSMA implemented specific regulations (Royal Decree of January 5, 2023 / FSMA Regulation published March 17, 2023, effective May 17, 2023) governing the advertising and marketing of virtual currencies to consumers in Belgium [2, 14, 15, 17, 22, 23]. Advertisements must be accurate, not misleading, clearly identifiable, and include mandatory risk warnings, such as: "Virtual currencies, real risks. The only guarantee in crypto is risk." [14, 15, 22]. Mass media campaigns targeting over 25,000 consumers must be pre-notified to the FSMA [14, 15, 17].
*   **Taxation:** Gains from cryptocurrency trading can be subject to tax. Depending on the nature of the activity, gains might be treated as "miscellaneous income" taxed at 33% (for speculative activities) or potentially subject to progressive income tax rates (up to 50%) if considered professional income [6, 18, 24]. Gains from the "normal management of private assets" might be tax-exempt, but this is less likely for active trading [6, 24]. There are discussions about potential changes to capital gains taxation that could impact crypto [24]. The upcoming EU DAC8 directive will mandate automatic data sharing by crypto platforms with tax authorities, increasing tax transparency [24].
*   **Consumer Warnings:** The FSMA and NBB consistently issue warnings to consumers about the significant risks associated with crypto-assets, including high volatility, fraud vulnerability, lack of guarantees, and technical/IT risks [2, 3, 14, 18, 22]. These warnings aim to educate rather than prohibit participation.

In summary, while Belgians can freely trade crypto, the ecosystem is regulated. Platforms serving Belgian customers must adhere to strict AML/KYC rules, and those established in Belgium require FSMA registration (now transitioning to MiCA authorization). Furthermore, strict rules apply to how crypto products can be advertised to consumers.

**3. Supporting Excerpts & Sources:**

*   **On VASP Registration & AML:** "Belgium implemented AMLD V in 2020... Since then, VASPs established in Belgium are subject to compliance with all provisions of the AML Act (including KYC, due diligence requirements and transactions monitoring requirements). In February 2022, the Belgian legislator completed this regime... Accordingly, providers of exchange services between virtual currencies and fiat currencies and custodian wallet providers... established in Belgium... are required, since May 2022, to register with the FSMA as a VASP in advance."
    *   *Source:* Elliptic Country Guide - Belgium (September 26, 2023) [2]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAITVazL_cPHyYtJZpiSAXHkjA9vLcITFWAqSdcE5R3ar8GrkErZorRJJS8fOH_Jj9UZnTrqqlUdtH91_s6CtkDranqdJZvQjuiHbj2q3RhVRWSyUDRLoLT7lQ5y6Q56CdD6w_Pm` (Note: Access might be restricted)

*   **On MiCA Applicability:** "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. The Regulation provides a framework for crypto-assets at European level..."
    *   *Source:* FSMA - Crypto Asset Service Provider (CASP) (January 14, 2025) [3]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAICBZepXjkp01WsHaFiBJiPVjgowr3lHHc8dm6j-RcpvFb7vwk8ielBir51eVeQ95APWTfPVWXzDT80-NzWlpIdSv6IRjjOBT-QhUHxcUwA3nde1ZypGN5C1TaDp8_I7vwkzDS0_y_IP-x__DdOMDE=` (Note: This is a search result link, the direct FSMA page may differ slightly but should contain this info)

*   **On MiCA Transition Status:** "As of January 2025, the Belgian legislator has not yet passed any law that empowers the FSMA or any other entity to act as a supervisor or license issuer under MiCA. Therefore, the transition to MiCA in Belgium appears to be in stasis until the necessary legislation is passed."
    *   *Source:* Belgium's MiCA Transition Stalls (February 12, 2025) [5]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqALMltjRiKxKkJlUtfTE3NNQGObAwwKa9qsfwWeaFYt-gfkFDzNHy1K42goumF7TKDUa6jyBO27ut5vD45j1mRriqYTDFQ9bRBWmEHNKehzykoiJt6dCjXCJq18e2zkmCEv6I9hg-iIke6G-BQzIP7SRDbOPywumffmu53RzjgERJJRKt_a5hdtzEaMaK1GgI_c4YSdQnxAlDaKNYBkKH0CO0grzyeFG23o4`

*   **On Advertising Rules:** "The FSMA issued a Regulation... that was published on 17 March 2023... and will enter into force on 17 May 2023... In addition to these conditions, advertisements must also contain a short and punchy warning: 'Virtual currencies, real risks. The only guarantee in crypto is risk.'... Lastly, mass media campaigns must be notified to the FSMA at least ten days in advance."
    *   *Source:* FSMA Press Release (March 20, 2023) [14]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAI_vjeY5cQE8Rq8CrwGZrAA5qUd7W_YrmYdKFCkUCyzmcWGWVD5KSEQZyWha-A6UeuVKB_Ps5foPeVUAk3RvgCnqpwBDAeVrQBCn-3Wiy11g5OoJTeIJ0bD2GH2Ct5v3TNn24pLpp_z1vaZyMWNW-PgBQgwi6CdpS6rkF6DKEwGPpSFD_h-rxfdCteAlQ==` (Note: This is a search result link, the direct FSMA page may differ slightly but should contain this info)

*   **On Non-Legal Tender Status:** "Cryptoassets are not considered legal tender in Belgium. The National Bank of Belgium recalled that cryptoassets are not comparable to money issued by a central bank or public authority because they are not considered legal means of payment in Belgium..."
    *   *Source:* Elliptic Country Guide - Belgium (September 26, 2023) [2]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAITVazL_cPHyYtJZpiSAXHkjA9vLcITFWAqSdcE5R3ar8GrkErZorRJJS8fOH_Jj9UZnTrqqlUdtH91_s6CtkDranqdJZvQjuiHbj2q3RhVRWSyUDRLoLT7lQ5y6Q56CdD6w_Pm` (Note: Access might be restricted)

*   **On General Permissibility & Taxation:** "Belgium recognizes bitcoin and other cryptocurrencies... The leading Belgium crypto exchanges that operate there are required to abide by the regulations that apply to the financial sector generally... According to the Special Tax Inspectorate (STI) in Belgium gains on crypto trading are classified as miscellaneous income and subject to income tax of 33%."
    *   *Source:* Coincub - Best Crypto Exchange Belgium (Undated, accessed April 2025) [6]
    *   *URL:* `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJ6JY5VGbh3svtA_irG1MAeWh85cJJcxUz9ftxeo9xn5zxEFPDgSAklAuEa9SBuqeC8RBnd7qvVBkNIjWaRFaaIEQxNBRAGNLiAeyM9t9jM6JxobDdpMA0A7yxFTw==`

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**Disclaimer:** This report is based on information available up to April 12, 2025. The regulatory landscape for cryptocurrencies is rapidly evolving, particularly with the ongoing implementation of MiCA across the EU. Users should consult official sources or seek professional legal/financial advice for the most current information and specific circumstances.