Round Table on Regulatory Framework for Virtual Asset Service Providers

On 21 April 2022, DLA Piper hosted a meeting organised with Fintech Belgium, a membership community of people who work in or with digital finance, to explore a number of themes and issues relating to cryptoassets, including the evolution of their regulation and the new Belgian regulatory framework around virtual asset service providers (VASP), which comes into force on 1 May 2022.

DLA Piper lawyers from our Belgium offices in Brussels and Antwerp led the discussion of the new regulatory framework recently introduced, and the effects that will be game changers for the evolution of cryptocurrencies, among other things. Partner in DLA Piper’s Financial Services & Insurance practice, Pierre Berger was supported by Alexander Hamels and Nicolas Kalokyris. They were joined in the discussion, moderated by Toon Vanagt from Data.be by Maria Staszkiewicz from the European Digital Finance Association, Matthieu Deraedt from BNP Paribas, Benoit Seys from Bit4you. Other panellists included Gaetan Laga from the FSMA and Simon Polrot from the European Crypto Initiative and Adan.

The round table attracted some 60 attendees, demonstrating the widespread interest and concerns surrounding cryptoassets which are at the centre of various debates in the financial services sector. The high price volatility, the increasing adoption of cryptoassets by traditional financial actors and the questions around the recognition of cryptoassets as national legal tenders have prompted discussions and created controversies. Given the risks, legislators and financial regulators are paying more and more attention to crypto-assets.

However, Belgian investors continue to be bullish on cryptocurrencies where the banking sector is more bearish with concerns around fraud and money laundering. Despite this position, a significant number of Belgian banks are planning to launch initiatives related to cryptoassets in the longer term.

When the meeting was opened to Q&A, there was keen interest promoting lively discussion of general questions, on the general evolution of cryptoassets regulation at the EU level (MiCA proposal and AML Transfers of Funds Regulation), the accounting treatment of cryptoassets, the different types of crypto-assets and their different uses, the comparison between crypto- and traditional assets, and the potential use of cryptoassets for payments. All panellists shared their views on questions over the course of the discussion.

In February 2022, the Belgian legislator introduced a new regulatory framework to regulate the provision of certain services related to virtual assets in Belgium. The new registration requirements and rules of functioning for VASPs will come into force on 1 May 2022. Our team wrote about the new Belgian VASP framework here.

For any further information on this topic, please contact Pierre Berger, Alexander Hamels or Nicolas Kalokyris.