Regulatory framework applicable to VASPs

The FSMA published a press release, reminding entities under its supervision that the provision of exchange and custody wallet services between virtual currencies and legal currencies in Belgium remains unregulated except for AML/CFT purposes.
Indeed, the Fifth Anti-Money Laundering Directive introduced AML/CFT requirements and a registration requirement for VASPs in Belgian law. The FSMA is responsible for supervising VASPs‘ activities and is the authority in charge of enrolling VASPs in the register. Providers operating before 1 May 2022 were eligible for a grandfathering scheme that allowed them to continue their operations until the FSMA decided on their registration.
Bit4You, which has been operating since 2018, was automatically included in the list of companies benefiting from a provisional authorization. Bit4You had to change its governance structure in response to irregularities found by the FSMA during its application for registration. Bit4You ultimately withdrew its application for registration on 2 May 2023, losing the benefit of the provisional authorization.
The FSMA had previously informed Bit4You of its intention to refuse the application for registration and had informed the Public Prosecutor of the irregularities found in the former management. In the meantime, Belgian and European supervisory authorities, including the FSMA, continue to issue warnings about the risks associated with the use of cryptocurrencies. The European MiCA Regulation, which is expected to come into force in early 2025, will introduce more comprehensive and prudential rules regarding crypto activities.