New rule on cryptocurrency came in Belgium, all crypto firms will have to register
The Belgian government has taken this decision to reduce the risk of scams and illegal use of crypto transactions.
- A large part of the crypto segment in Belgium is not yet regulated by the government there.
- This new rule will also be applicable to existing asset firms.
- Many countries are currently preparing to regulate crypto currency, in which India is also one.
- India has called upon international countries to take a joint decision to regulate cryptocurrency.
Preparations have been made to rein in another country on crypto currency. The Belgian government has made it mandatory for all virtual asset firms to reveal their identity. The Financial Services and Markets Authority (FSMA) of Belgium has ordered all crypto currency related firms to register. It is believed that with this, the use of crypto transactions in illegal activities and the risk of scams will be reduced. Many countries are already preparing to rein in or regulate cryptocurrency, in this episode the Belgian government has taken this decision.
The statement issued by the FSMA said that “from the beginning of May, registration with the FSMA will be required to provide exchange services or custody wallet services related to virtual currency in Belgium”, and this rule will also apply to all existing firms. The population of the country of Belgium is about 1.2 crore. If we talk about the tax on cryptocurrencies, then the ‘Special Tax Inspectorate’ (STI) in Belgium puts the profits from the sale of all cryptocurrencies in the category of ‘Miscellaneous Income’. Like other countries, the number of people investing in cryptocurrencies is increasing in Belgium too. According to estimates, about 2.80 lakh people had cryptocurrency in Belgium last year.
Apart from this, earlier this year Chridtophe De Beukelaer, a resident of the Belgian capital Brussels, became the first European politician to convert his salary into bitcoin.
But so far, a large part of the Belgian crypto segment is not regulated and legislation is underway in Belgium. The Belgian government has warned that the virtual currency has not yet been given legal status there.
Let us tell you that cryptocurrencies have not yet been legally recognized in India. Currently, there is a provision of 30% tax on cryptocurrency in India.
Many countries of the world like United Arab Emirates, UK, Cuba and Singapore etc. are taking measures to protect the investors associated with crypto currency.
There has always been controversy over regulating and banning cryptocurrency in India and internationally.
In India, the Reserve Bank of India seems to be in favor of banning cryptocurrency. Reserve Bank of India Governor Shaktikanta Das and former Governor Raghuram Rajan have also openly criticized the cryptocurrency.
If we talk about the leaders of the crypto industry, then they are seen arguing in favor of regulating crypto without tax.
It will be interesting to see how the Indian government and governments around the world ban or regulate cryptocurrency.