Belgium

Disclaimer: The regulatory information provided below is for general informational purposes only and may not reflect the most current legal developments. Cryptocurrency regulations are rapidly evolving and can change frequently. This information should not be considered legal or tax advice. Before making any business or investment decisions, please consult with qualified legal, tax, or financial professionals familiar with your specific jurisdiction and circumstances. Always verify current regulations with official government sources and regulatory bodies.

Legal Classification & Regulatory Framework

Cryptocurrency Status

In Belgium, cryptocurrencies such as Bitcoin and Ethereum are not considered legal tender. The National Bank of Belgium (NBB) has explicitly stated that crypto-assets are not comparable to money issued by a central bank or public authority. Digital assets do not benefit from any government guarantee and do not fulfil the fundamental functions of traditional money according to Belgian authorities. The Belgian Minister of Finance has ruled out the possibility of giving legal tender status to Bitcoin and other cryptocurrencies, citing significant risks to monetary policy and financial stability.

Despite not being recognized as legal tender, buying, selling, holding, and trading cryptocurrencies is entirely legal in Belgium. Crypto-assets are generally treated as movable property or financial instruments depending on their characteristics. Certain crypto-assets may qualify as securities, investment instruments, or financial instruments under existing Belgian financial law, which triggers additional regulatory requirements including prospectus rules and conduct of business obligations.

The Financial Services and Markets Authority (FSMA) has issued guidance on how different types of crypto-assets should be classified. Pure utility tokens may fall outside financial regulation, while investment tokens with profit-sharing characteristics or tokens representing underlying assets often qualify as regulated financial instruments. This classification determines which regulatory framework applies to issuers, service providers, and market participants.

Tax Treatment

Belgium does not have dedicated cryptocurrency tax legislation. Instead, crypto-assets are fitted into the existing tax framework, with the tax treatment depending on the nature and circumstances of each investor’s activities. The Belgian tax authorities and the Federal Public Service Finance (SPF Finances) assess situations individually, creating a system that ranges from completely tax-exempt to full professional income taxation.

The Belgian tax system recognizes three primary categories of crypto investors. The first category encompasses prudent investors practicing “normal management of private assets” (the “bon père de famille” or good family man principle). These investors who maintain a long-term holding strategy, use only their own funds, invest a modest portion of their total wealth in crypto, and engage in minimal trading activity may enjoy complete tax exemption on their capital gains.

The second category covers speculative investors. When cryptocurrency transactions fall outside the normal management of private wealth and are deemed speculative in nature, capital gains are taxed as “miscellaneous income” at a flat rate of 33% plus municipal surcharges (approximately 7% additional). Factors indicating speculative behavior include high transaction frequency, investing a significant portion of movable assets in crypto (typically above 20-25%), using borrowed funds, and shorter holding periods.

The third category applies to professional traders. When crypto trading constitutes a professional activity or generates consistent income, gains are subject to progressive income tax rates ranging from 25% to 50%, plus social security contributions. Corporate entities face a corporate income tax rate of 25% on crypto-related profits.

Passive income from cryptocurrency activities such as staking rewards, lending interest, liquidity pool earnings, and airdrops is typically taxed as capital income at 30% or as miscellaneous income depending on the circumstances. The First-In-First-Out (FIFO) method is used for calculating gains on disposed assets. Capital losses from speculative activities can offset gains within the same category and may be carried forward.

Belgium is implementing a new 10% capital gains tax on financial assets that will also apply to cryptocurrency gains. This tax introduces a yearly allowance for tax-free capital gains, with amounts above the threshold taxed at 10%. The existing tax categories for speculative and professional trading are expected to continue operating alongside this new framework, potentially creating a complex dual system where the distinction between investment categories remains crucial.

Regulatory Oversight

Belgium operates a Twin Peaks supervisory model with two autonomous financial regulatory bodies. The Financial Services and Markets Authority (FSMA) is responsible for monitoring the proper functioning, transparency, and integrity of financial markets, supervising unlawful offerings of products and services, overseeing conduct of business rules, and ensuring consumer protection. The National Bank of Belgium (NBB) handles prudential supervision of financial institutions at both macro and micro levels, including monitoring systemic risks.

The European Markets in Crypto-Assets Regulation (MiCA) has been directly applicable in Belgium since its full implementation. As an EU regulation, MiCA does not require transposition into national law. Belgium has been working on implementation legislation to formally designate competent authorities and allocate supervisory responsibilities under MiCA. The proposed framework assigns the FSMA primary responsibility for supervising crypto-asset white papers, marketing communications, and conduct of business rules for most crypto-asset issuers and service providers. The NBB would handle prudential supervision for asset-referenced tokens (ARTs) and would oversee crypto-asset service providers that are already regulated financial institutions.

Anti-money laundering (AML) and know-your-customer (KYC) compliance are mandatory for crypto-asset service providers in Belgium. The FSMA oversees compliance with anti-money laundering legislation by virtual currency service providers based in Belgium, in accordance with the Law on the prevention of money laundering and terrorist financing. Mandatory identity verification applies to transactions, and service providers must implement robust AML procedures.

Business Environment

Banking Relationships

Major Belgian banks generally permit SEPA transfers to EU-licensed cryptocurrency exchanges, subject to their internal compliance checks. Customers seeking to interact with crypto platforms typically can initiate transfers from their traditional bank accounts, though starting with a small test transfer is often recommended to confirm smooth processing. Banks may ask questions about the origin of funds when larger amounts are involved or when customers attempt to repatriate crypto proceeds.

However, there are notable challenges for crypto businesses seeking banking services in Belgium. Many traditional banks remain reluctant to serve companies operating in the cryptocurrency sector, creating operational difficulties despite the legal recognition of crypto activities. This banking hesitancy is not unique to Belgium but represents a common challenge across Europe. Crypto businesses may need to explore multiple banking partners or consider specialized financial institutions more receptive to the digital asset industry.

The NBB has issued guidance to financial institutions regarding crypto-asset exposures. Following the Basel Committee’s statement on crypto-assets, the NBB released a circular reiterating warnings about crypto-related risks and setting out expectations for banks acquiring crypto exposures or providing related services. Financial institutions are expected to exercise caution and implement appropriate risk management measures when engaging with crypto-assets.

Licensing Requirements

Under the MiCA framework, crypto-asset service providers (CASPs) must obtain authorization to operate in Belgium and the broader EU market. MiCA establishes harmonized requirements for exchanges, custodial wallet providers, trading platforms, and other crypto service providers. The regulation introduces white paper requirements for public offerings of crypto-assets, mandatory risk disclosures, and conduct of business rules protecting investors.

A transitional period allows service providers that were operating lawfully before MiCA’s full application to continue their activities until they receive authorization or face rejection. CASPs governed by another EU member state’s law that were already providing services in Belgium may continue operations during the transition period, provided they comply with their home country requirements. This has practical significance given that the Belgian market has historically been served largely by non-Belgian EU crypto companies.

Stablecoin issuers face specific requirements under MiCA, including reserve and transparency obligations. Asset-referenced tokens (ARTs) and e-money tokens (EMTs) are subject to prudential supervision, with the NBB handling authorization, capital requirements, and reserve arrangements for these categories. The FPS Economy is responsible for ensuring compliance with token redeemability rules.

The marketing of crypto-assets to Belgian consumers is regulated through the FSMA’s Virtual Currency Distribution Regulation. Advertisements must include specific risk warnings, must be clearly identifiable as promotional content, and must be fair, clear, and not misleading. Mass media campaigns reaching a significant number of Belgian consumers require prior notification to the FSMA. The regulation extends to influencers promoting crypto-assets on social media platforms.

Innovation Support

Belgium offers a generally supportive environment for fintech and blockchain innovation through several initiatives. The FinTech Contact Point, jointly operated by the FSMA and NBB since its evolution from the original FSMA portal launched in 2016, provides a single point of contact for fintech entrepreneurs. This portal helps companies understand applicable financial legislation, receive guidance on regulatory requirements, and navigate the Twin Peaks supervisory model without needing to determine which authority to approach.

The Blockchain4Belgium initiative was launched to create a platform bringing together industry players, academics, civil society, and various government authorities. This initiative aims to present findings and recommendations to the Belgian federal government for the strategic development and deployment of blockchain technology. Hundreds of professionals have participated in supporting this effort to advance blockchain adoption.

Belgium participates in EU-level blockchain initiatives including the European Blockchain Services Infrastructure (EBSI) and has been involved in European Central Bank (ECB) explorations of integrating blockchain technology into financial systems. The country’s central position within EU institutions provides Belgian stakeholders with opportunities to help shape European crypto and blockchain policy.

While Belgium does not operate a formal regulatory sandbox specifically for crypto and blockchain, the regulators are generally receptive to innovation and dialogue with fintech companies. Both the NBB and FSMA commit to responding to fintech inquiries within short timeframes and assisting firms in understanding the regulatory framework applicable to their activities.

Market Characteristics

Adoption Patterns

Belgium has a growing cryptocurrency user base, with digital asset penetration rates comparable to neighboring European countries. The market is largely serviced by EU-based platforms operating under the MiCA framework or exercising their European passport rights. Major international exchanges with EU authorizations are accessible to Belgian consumers, who can use standard banking transfers to fund their accounts.

Belgian investors primarily access cryptocurrencies through regulated exchanges and are increasingly able to gain exposure through exchange-traded products (ETPs) listed on European venues. Several physically backed Bitcoin and Ethereum products are available through brokerage accounts, offering an alternative entry point within the traditional securities framework.

Consumer protection measures have been strengthened through the mandatory risk warnings on crypto advertising and the enhanced disclosures required under MiCA. Belgian authorities have issued multiple warnings to retail investors about the risks of crypto-assets, including the possibility of total loss, absence of deposit protection, and technology-related risks. These consumer protection efforts aim to ensure investors make informed decisions.

Industry Focus

Belgium has developed notable strengths in enterprise blockchain applications and institutional crypto infrastructure. Belgian startups have achieved success in areas including algorithmic trading and market making, real-world asset tokenization, and integration of blockchain technology with traditional financial services. Companies have developed solutions spanning logistics, supply chain management, and financial settlement systems.

The country hosts blockchain development expertise serving both cryptocurrency projects and enterprise solutions. A distinction exists between retail-focused crypto activities and business-to-business blockchain applications, with enterprise use cases often involving permissioned blockchain networks operating within well-defined regulatory parameters. Major Belgian financial institutions have experimented with blockchain technology for settlement and tokenization purposes.

Belgium’s position as home to major EU institutions creates a unique regulatory and policy environment. Professional services firms, law practices, and consultancies specializing in crypto regulation have developed expertise in navigating the complex intersection of Belgian and EU requirements.

Regulatory Evolution

Belgium’s crypto regulatory trajectory is closely aligned with EU-wide developments. The full implementation of MiCA represents the most significant regulatory milestone, establishing comprehensive requirements for crypto-asset issuers and service providers across the European Union. Belgium has actively participated in shaping MiCA and related EU initiatives, reflecting its commitment to harmonized European financial regulation.

The DAC8 directive will introduce automatic exchange of crypto-related data between tax authorities across EU member states. Belgian crypto-asset service providers will be required to report customer transactions and identification information, with this data shared automatically with tax authorities. Additionally, Belgian taxpayers will face expanded reporting obligations for crypto accounts held with foreign platforms, which must be declared to the Central Contact Point (CAP) of the National Bank of Belgium.

Future regulatory attention is expected on areas not fully addressed by MiCA’s initial framework. Decentralized finance (DeFi) protocols remain largely outside current regulatory scope, though authorities are monitoring developments and potential MiCA amendments may eventually address decentralized applications. Stablecoin regulation continues to evolve, with particular attention to systemic risk considerations for widely adopted stablecoins.

Belgium’s regulatory approach emphasizes financial stability and consumer protection while maintaining openness to innovation. The country positions itself as a stable, compliant environment within the EU framework rather than competing with more permissive jurisdictions. This approach may favor institutional adoption and traditional financial services integration over more experimental or cutting-edge crypto applications.

For Current Information

Financial Services and Markets Authority (FSMA)
https://www.fsma.be/en/crypto

FSMA – Crypto-Asset Service Providers (CASP)
https://www.fsma.be/en/crypto-asset-service-provider-casp

National Bank of Belgium (NBB)
https://www.nbb.be/en

Federal Public Service Finance (SPF Finances) – Tax Information
https://finances.belgium.be/en

Advance Rulings Service (Ruling Office) – Tax Classification
https://eservices.minfin.fgov.be/dvb/dvbstatic/rulings-en/home.html

FinTech Belgium
https://fintechbelgium.be/