Belgium

{
  "analysis_text": "Belgium has established a clear and stringent regulatory framework for cryptocurrencies, characterized by a mandatory registration regime for intermediaries and aggressive consumer protection measures. The Financial Services and Markets Authority (FSMA) serves as the primary regulator, overseeing compliance with Anti-Money Laundering (AML) laws and conduct of business rules. Since May 1, 2022, any entity providing exchange services between virtual currencies and fiat, or offering custodial wallets, must register with the FSMA. As of late 2025, the FSMA\u0027s public register lists seven authorized Virtual Asset Service Providers (VASPs), confirming that the licensing regime is operational and not merely theoretical.\n\nA defining feature of the Belgian market is the strict prohibition on the marketing of crypto-derivatives to retail investors. Enacted via a Royal Decree in 2016 and reinforced by subsequent warnings, this ban prevents platforms from offering Contracts for Difference (CFDs) or binary options with crypto underlyings to non-professional clients. This measure effectively bifurcates the market: spot trading is permitted and regulated, while leveraged speculative products are blocked. Additionally, the FSMA enforces a \u0027Non-EEA Ban,\u0027 prohibiting service providers established outside the European Economic Area from soliciting Belgian clients, forcing major global exchanges to operate through EEA-licensed entities.\n\nConsumer protection is further bolstered by the Royal Decree of 5 January 2023, which introduced some of the strictest advertising rules in Europe. All crypto advertisements must carry the warning \u0027Virtual currencies, real risks. The only guarantee in crypto is risk.\u0027 Furthermore, any mass media campaign targeting more than 25,000 consumers requires notification to the FSMA at least 10 days in advance. This allows the regulator to intervene pre-emptively against misleading promotions. The enforcement of these rules was highlighted by the case of Bit4You, a Belgian exchange that suspended operations in 2023 following the insolvency of a service provider and regulatory pressure regarding its registration status.\n\nTaxation for retail investors hinges on the legal concept of the \u0027Good Housefather\u0027 (Bon p\u00e8re de famille). Gains resulting from the \u0027normal management of private wealth\u0027 are tax-exempt. However, if trading behavior is deemed speculative (frequent trades, high risk, use of leverage), profits are taxed as miscellaneous income at a flat rate of 33%. Professional traders face progressive income tax rates up to 50%. This subjective distinction creates a degree of uncertainty for frequent traders, though the default for long-term holders is favorable.",
  "confidence_level": "High",
  "executive_summary": "Cryptocurrency trading is legal in Belgium and formally regulated by the Financial Services and Markets Authority (FSMA). Service providers (VASPs) must register with the FSMA to offer exchange and custodial services, with seven entities currently on the register. While spot trading is permitted, the distribution of crypto-derivatives (CFDs, binary options) to retail investors is explicitly banned. Strict advertising rules are in force, requiring risk warnings and prior notification for mass campaigns.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.fsma.be/en/check-your-provider",
      "title": "fsma.be",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHVxuuvsRwTlEGg6mau-yM65moMfh7EYB8wVLpYutcCiXKNCrD5JsiHhi1ODESVWVFjsuC19swY8HgU2McXqoiG5jOCRKQzEjHo3fZ-ekDb2PFVQRUTXajdr14FJREOHJfciW30wA=="
    }
  ],
  "status": "Allowed-Regulated",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "Belgium has established a clear and stringent regulatory framework for cryptocurrencies, characterized by a mandatory registration regime for intermediaries and aggressive consumer protection measures. The Financial Services and Markets Authority (FSMA) serves as the primary regulator, overseeing compliance with Anti-Money Laundering (AML) laws and conduct of business rules. Since May 1, 2022, any entity providing exchange services between virtual currencies and fiat, or offering custodial wallets, must register with the FSMA. As of late 2025, the FSMA\u0027s public register lists seven authorized Virtual Asset Service Providers (VASPs), confirming that the licensing regime is operational and not merely theoretical.\n\nA defining feature of the Belgian market is the strict prohibition on the marketing of crypto-derivatives to retail investors. Enacted via a Royal Decree in 2016 and reinforced by subsequent warnings, this ban prevents platforms from offering Contracts for Difference (CFDs) or binary options with crypto underlyings to non-professional clients. This measure effectively bifurcates the market: spot trading is permitted and regulated, while leveraged speculative products are blocked. Additionally, the FSMA enforces a \u0027Non-EEA Ban,\u0027 prohibiting service providers established outside the European Economic Area from soliciting Belgian clients, forcing major global exchanges to operate through EEA-licensed entities.\n\nConsumer protection is further bolstered by the Royal Decree of 5 January 2023, which introduced some of the strictest advertising rules in Europe. All crypto advertisements must carry the warning \u0027Virtual currencies, real risks. The only guarantee in crypto is risk.\u0027 Furthermore, any mass media campaign targeting more than 25,000 consumers requires notification to the FSMA at least 10 days in advance. This allows the regulator to intervene pre-emptively against misleading promotions. The enforcement of these rules was highlighted by the case of Bit4You, a Belgian exchange that suspended operations in 2023 following the insolvency of a service provider and regulatory pressure regarding its registration status.\n\nTaxation for retail investors hinges on the legal concept of the \u0027Good Housefather\u0027 (Bon p\u00e8re de famille). Gains resulting from the \u0027normal management of private wealth\u0027 are tax-exempt. However, if trading behavior is deemed speculative (frequent trades, high risk, use of leverage), profits are taxed as miscellaneous income at a flat rate of 33%. Professional traders face progressive income tax rates up to 50%. This subjective distinction creates a degree of uncertainty for frequent traders, though the default for long-term holders is favorable.",
    "executive_summary": "Cryptocurrency trading is legal in Belgium and formally regulated by the Financial Services and Markets Authority (FSMA). Service providers (VASPs) must register with the FSMA to offer exchange and custodial services, with seven entities currently on the register. While spot trading is permitted, the distribution of crypto-derivatives (CFDs, binary options) to retail investors is explicitly banned. Strict advertising rules are in force, requiring risk warnings and prior notification for mass campaigns.",
    "important_considerations": [
      "Retail derivatives ban: CFDs and binary options on crypto are illegal to market to retail investors.",
      "Taxation: Capital gains are tax-free if considered \u0027normal management of private wealth\u0027 (Bon p\u00e8re de famille).",
      "Speculative Tax: Gains deemed \u0027speculative\u0027 are taxed as miscellaneous income at a flat rate of 33%.",
      "Professional Tax: Professional trading income is taxed at progressive rates up to 50%.",
      "Non-EEA Ban: VASPs from outside the EEA are prohibited from actively soliciting Belgian clients."
    ],
    "key_regulatory_pillars": [
      "Financial Services and Markets Authority (FSMA) - Primary Regulator",
      "Mandatory VASP Registration for exchange and custody services",
      "Strict Anti-Money Laundering (AML) and KYC compliance",
      "Prohibition on marketing crypto-derivatives to retail investors",
      "Advertising regulations requiring risk warnings (\u0027The only guarantee in crypto is risk\u0027)"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2022-02-01",
        "identifier": "Law amending the Law of 18 September 2017",
        "name": "Law of 1 February 2022",
        "summary": "Introduced the legal status and supervision of providers of exchange services between virtual currencies and fiat currencies, and custodian wallet providers.",
        "url": "https://www.fsma.be/en/news/new-registration-obligation-virtual-asset-service-providers-vasps-belgium"
      },
      {
        "date_enacted": "2022-02-08",
        "identifier": "Royal Decree on the status and supervision of VASPs",
        "name": "Royal Decree of 8 February 2022",
        "summary": "Established specific rules and conditions for VASP registration with the FSMA, including fit and proper tests for management.",
        "url": "https://www.fsma.be/sites/default/files/public/content/EN/Circulaires/2022/fsma_2022_04_en.pdf"
      },
      {
        "date_enacted": "2023-01-05",
        "identifier": "Regulation on the commercialization of virtual currencies",
        "name": "Royal Decree of 5 January 2023",
        "summary": "Imposes strict requirements on crypto advertising, including mandatory risk warnings and a 10-day prior notification requirement for mass campaigns (\u003e25,000 people).",
        "url": "https://www.fsma.be/en/news/new-rules-advertisements-virtual-currencies-enter-force"
      },
      {
        "date_enacted": "2016-07-21",
        "identifier": "Regulation on the distribution of certain derivative financial instruments",
        "name": "Royal Decree of 21 July 2016",
        "summary": "Bans the distribution of OTC derivatives (CFDs, binary options) to retail clients, specifically including those with virtual currencies as an underlying asset.",
        "url": "https://www.fsma.be/en/news/restrictions-distribution-certain-otc-derivatives-belgian-retail-investors"
      }
    ],
    "notes_and_comments": "Belgium is notable for having some of the strictest crypto advertising rules in the EU, pre-dating MiCA\u0027s implementation. The \u0027Good Housefather\u0027 tax principle is unique to Belgian law and offers a significant advantage to long-term holders compared to neighboring jurisdictions.",
    "primary_sources": [
      {
        "date": "2025-12-12",
        "key_quote": "Register of providers of exchange services between virtual and fiat currencies... Virtual Assets Service Providers (7)",
        "source_type": "regulator",
        "title": "FSMA Register of providers of exchange services between virtual and fiat currencies",
        "url": "https://www.fsma.be/en/register-providers-exchange-services-between-virtual-and-fiat-currencies"
      },
      {
        "date": "2022-04-29",
        "key_quote": "As of 1 May 2022, certain crypto-related activities in Belgium will become regulated. The providers of these services will have to register with the Financial Services and Market Authority (\u0027FSMA\u0027).",
        "source_type": "regulator",
        "title": "New registration obligation for Virtual Asset Service Providers (VASPs)",
        "url": "https://www.fsma.be/en/news/new-registration-obligation-virtual-asset-service-providers-vasps-belgium"
      },
      {
        "date": "2023-05-17",
        "key_quote": "The Regulation imposes... the insertion of mandatory statements and, in particular, the brief warning \u0027Virtual currency, real risks. The only guarantee in crypto is risk.\u0027",
        "source_type": "regulator",
        "title": "New rules on advertisements for virtual currencies enter into force",
        "url": "https://www.fsma.be/en/news/new-rules-advertisements-virtual-currencies-enter-force"
      },
      {
        "date": "2023-05-08",
        "key_quote": "FSMA had previously notified Bit4You of its intention to refuse its request for registration",
        "source_type": "regulator",
        "title": "Bit4You\u0027s Affairs in Doubt Even Before CoinLoan Collapse",
        "url": "https://www.fsma.be/en/news/fsma-statement-regarding-bit4you"
      }
    ],
    "remaining_uncertainties": [
      "The exact criteria distinguishing \u0027normal management of private wealth\u0027 from \u0027speculative\u0027 trading remain subjective and case-dependent.",
      "The full impact of MiCA implementation on the existing Belgian VASP regime and advertising rules during the transition period."
    ],
    "secondary_sources": [
      {
        "date": "2024-10-03",
        "key_quote": "In Belgium, non-speculative investors who adopt a long-term investment strategy are exempt from taxation on crypto transactions... speculative investors... taxed as miscellaneous income at a rate of 33%.",
        "source_type": "analysis",
        "title": "Belgium Crypto Tax Guide 2025",
        "url": "https://kryptos.io/blog/belgium-crypto-tax-guide"
      },
      {
        "date": "2023-03-28",
        "key_quote": "Mass advertising campaigns addressed to more than 25,000 people must also be notified to the regulator 10 days in advance.",
        "source_type": "analysis",
        "title": "Belgium: Financial watchdog tightens rules on crypto advertising",
        "url": "https://www.bakermckenzie.com/en/insight/publications/2023/03/belgium-financial-watchdog-tightens-rules-on-crypto-advertising"
      }
    ],
    "status": "Allowed-Regulated"
  }
}