Self-custodial wallet / non-custodial software in Belgium
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is conditionally permitted in Belgium without local incorporation, subject to AML obligations and none licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- No AML obligations attach to the publisher of self-custodial wallet software, because the publisher never holds, controls, or has access to client private keys or funds — the definition of 'custodian wallet provider' under Belgian law expressly covers 'holding private cryptographic keys on behalf of clients' (be.licensing.scope-this-covers-services-that).
- Belgian AML registration requirements under the Law of 18 September 2017 apply only to 'providers of custodian wallets' (Article 5, §1, 37°), which does not capture non-custodial software publishers (be.custody.legal-basis-the-law-of, be.custody.requirement-providers-of-custodian-wallet).
- The 5th AMLD extended AML rules to 'custodian wallet providers' — i.e., entities that safeguard private keys on behalf of clients. Pure software publishing without key custody is outside this scope (be.aml.5th-amld-directive-eu-2018843, be.aml.impact-extended-the-scope-of).
- Under MiCA (applicable Dec 2024 for CASPs), the regulated activity is 'safekeeping and administration of crypto-assets on behalf of clients,' which does not cover mere publication of non-custodial software (be.custody.scope-mica-defines-safekeeping-and, be.custody.article-53-general-obligations-for).
Key Restrictions
- The publisher must not take any action that could be construed as providing custody, safekeeping, or control over client private keys or crypto-assets — doing so would trigger VASP/CASP registration with the FSMA under the AML Law and/or MiCA.
- The publisher must not facilitate exchanges between crypto and fiat currency or provide exchange services — that would trigger VASP registration obligations (be.licensing.scope-this-includes-services-for).
- Under MiCA (applicable from Dec 2024), if the software is bundled with any service that involves safekeeping or administration of crypto-assets on behalf of clients, CASP authorization from the FSMA would be required (be.custody.authorization-providers-of-safekeeping-and).
Key Risks
- Regulatory boundary risk: If the software incorporates any integrated on-ramp/off-ramp, swap feature, or hosted key-recovery mechanism, the FSMA could reclassify the operator as a custodian wallet provider or exchange service, triggering retroactive registration/enforcement.
- Enforcement precedent risk: Belgian authorities may interpret 'custody' broadly if the software publisher exercises any degree of control over user transactions or assets (e.g., through proprietary smart contracts or admin keys).
- Consumer protection exposure: Even without AML obligations, the FSMA publishes consumer warnings about crypto risks; a self-custodial wallet publisher could be the subject of warnings if users suffer losses attributable to software defects.
- MiCA transition risk: The regulatory boundary between 'software publisher' and 'CASP' may narrow under MiCA if the wallet software is marketed as a service rather than distributed as standalone code.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Scope: This covers services that provide the safekeeping and management of virtual currencies on behalf of clients, including holding private cryptographic keys.
Scope: This includes services for the exchange between virtual currencies and fiat currencies, as well as exchange services between one or more virtual currencies.
Requirement: Providers of "custodian wallet services" are required to register with the FSMA. This is not a full financial services license but an AML registration.
Legal Basis: The Law of 18 September 2017 on the prevention of money laundering and terrorist financing and on the restriction of the use of cash. Specifically, Article 5, §1, 37° designates "providers of custodian wallets" as entities subject to AML/CFT obligations.
Scope: MiCA defines "safekeeping and administration of crypto-assets on behalf of clients" as the activity of safeguarding or controlling crypto-assets or instruments giving access to crypto-assets on behalf of third parties.
Article 53 (General obligations for CASPs) and Article 67 (Specific obligations for providers of safekeeping and administration of crypto-assets on behalf of clients) are particularly relevant.
Authorization: Providers of "safekeeping and administration of crypto-assets on behalf of clients" will need to obtain authorization as a Crypto-Asset Service Provider (CASP) from their national competent authority (the FSMA in Belgium). This is a more comprehensive authorization than the current AML registration.
Directive (EU) 2018/843 (5th AMLD) remains part of the binding EU AML framework as transposed into Belgian law, but it is no longer the sole or ultimate regulatory baseline: Belgium’s regime is now shaped by 4AMLD as amended by 5AMLD plus subsequent EU legislative and institutional reforms (including the emerging AMLA framework), and Belgium has been formally challenged over incorrect transposition of these directives.
Impact: Extended the scope of AML/CFT rules to include providers engaged in exchange services between virtual currencies and fiat currencies, and custodian wallet providers. This mandated registration requirements at the national level.
Current Regime (Belgium): It is a registration regime, primarily focused on AML/CTF compliance. It does not imply a full prudential licensing similar to banks, traditional investment firms, or e-money institutions. The FSMA grants "registration" but does not "license" in the broader financial sense that implies comprehensive prudential oversight of capital, risk management beyond AML, consumer protection, etc.
Legal Basis: The Law of 18 September 2017 on the prevention of money laundering and terrorist financing and on the restriction of the use of cash. Specifically, Article 5, §1, 37° designates "providers of custodian wallets" as entities subject to AML/CFT obligations.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a publisher of non-custodial/self-custodial wallet software is not a VASP, custodian wallet provider, or CASP under Belgian law nor MiCA, provided it never holds or controls user private keys or funds; no registration or AML obligations attach, but any feature crossing into custody, exchange, or key control would trigger FSMA registration and/or MiCA CASP authorization.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?