Understanding the Legal Status of Cryptocurrency in Belgium

Cryptocurrency remains a legal but carefully monitored financial asset in Belgium. While there is no law explicitly banning the use of cryptocurrencies like Bitcoin or Ethereum, the Belgian government, through the Financial Services and Markets Authority (FSMA), has implemented several measures to protect consumers and maintain financial stability. Cryptocurrencies are not recognized as legal tender, but individuals are free to buy, sell, and hold them. Businesses can also accept them as payment, although this is not widespread due to regulatory uncertainties and tax considerations.

The FSMA, Belgium’s financial regulatory authority, has issued warnings about the risks associated with cryptocurrency investments. These include market volatility, lack of regulation, and potential fraud. In response, the FSMA has compiled a list of suspicious platforms and continues to update it regularly. Furthermore, individuals or companies offering virtual currency services must register with the FSMA and meet anti-money laundering (AML) obligations under the law of 18 September 2017 (1).

Service providers engaged in the exchange between virtual and fiduciary currencies, as well as custodian wallet providers, must register with the FSMA and comply with anti-money laundering legislation (1).

From a taxation perspective, the Belgian Federal Public Service Finance (FPS Finance) classifies capital gains from occasional cryptocurrency transactions by individuals as miscellaneous income, taxed at a rate of 33%. However, if such activities are considered professional, the income is taxed at standard progressive rates (2). This classification often depends on the frequency and scale of transactions. For companies, profits from crypto transactions are treated as normal business income and taxed accordingly.

While Belgium has not imposed a ban on cryptocurrencies, its regulatory framework ensures these assets are not left unchecked. Investors and businesses operating in the crypto space must remain compliant with strict rules on registration, transparency, and taxation. As the European Union continues to refine its approach to digital assets through legislation such as MiCA (Markets in Crypto-Assets), Belgium is expected to align with broader EU standards.

Source:
https://www.fsma.be/en/virtual-currency-service-providers
https://finance.belgium.be/en/individuals/income-tax/types-income/other-income/taxation-crypto-assets

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.