The Financial Services and Markets Authority (FSMA) is the agency of Belgium whose task is to regulate the Belgium financial industry. Keeping in view its task, FSMA appeals to the Belgium government to regulate the digital currencies.

This issue is raised by the chairman of FSMA Senator Jean-Paul Servais during a Senate hearing in Belgium according to a report that published on Finance Magnates. He appeared before Senate with his proposal and prompted the lawmakers of country to establish a legal framework for sale, purchase, use of cryptocurrencies, and all related products.

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FSMA chairman also cited some countries such as Russia, China, Algeria, Argentina etc. which made progress. Jean-Paul said that these countries either banned the use of cryptocurrencies or regulated them. While talking about other countries progress in this case, he also talked about the inefficiency of Belgium authorities to address the industry.

During the Senate hearing, he also mentioned the conflicts on the warnings issued by the market watchdog and the National Bank of Belgium while responding to an event promoting a Bitcoin-backed business.

Crypto market is flooded enough to raise alarms

According to the report, the Chairman of FSMA then shows his concerns about the flooding of the crypto market. He said that the market has currently over a thousand cryptocurrencies worth $320 billion.

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He said that this flooded market is enough to create difficulty for the Belgium economy. He also said that if this market is not controlled, then there is a possibility that various fraudulent activities with the help these digital currencies affect investors in the Belgium market. Besides, he also pointed out the increasing number of Bitcoin vending machines and ATMS and how they are continuously popping out around the world, a couple of them is placed in Belgium.

What the official resolution of agency says

The resolution of the agency stated that the world’s leading digital currency bitcoin and other virtual currencies are not traceable. According to the official resolution of the agency:

“Due to their non-traceability, Bitcoins and other virtual currencies popular in the context of cybercrime ain’t ubiquitous on the darknet, since they can become cybercrime committed without leaving traces.”

The resolution then says that the legal framework should immediately be established for the digital currencies. As it states:

“A legal framework should be established without delay for virtual money and related financial products. It’ll help protect consumers and the use of this virtual currency for criminal objectives.”

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