Stablecoin issuer / redeemer in Belgium

Classification of Stablecoins:

E-money Tokens (EMTs): These are crypto-assets that purport to maintain a stable value by referencing the value of one single fiat currency (e.g., a token pegged to EUR or USD). They are essentially a digital form of electronic money.

Asset-Referenced Tokens (ARTs) are crypto-assets that are not electronic money tokens and that purport to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies.

EMT Issuers: Issuers of EMTs must either be an authorized credit institution or an authorized electronic money institution (EMI). In Belgium, EMIs are supervised by the NBB under the Law of 11 March 2018 (transposing EMD2).

ART Issuers: An entity wishing to issue ARTs must be a legal entity established in the EU and obtain authorization as an issuer of ARTs. The NBB will likely be the primary authority, especially if the issuer is a financial institution, or in coordination with the FSMA.

Authorization Required: Issuing ARTs or EMTs requires prior authorization from the competent authority (NBB or FSMA in Belgium, depending on the token type and issuer characteristics).

100% Backing: Issuers of ARTs and EMTs must at all times maintain a reserve of assets that is separate from their operational funds and covers 100% of the value of the outstanding stablecoins.

Segregation and Custody: Reserve assets must be segregated from the issuer's own assets and held in custody by credit institutions or other authorized entities, ensuring safety and liquidity.

Investment Restrictions: Reserve assets must be invested in highly liquid instruments with minimal market risk. For EMTs, the reserve assets must be invested in secure, low-risk assets denominated in the same currency as the EMT.

EMT holders have the right to redeem their tokens at par value at any time without undue delay. ART holders have redemption rights, but these are subject to issuer-specific terms, redemption timelines, and conditions based on asset composition—not automatically at par on demand.

Whitepaper: Issuers must publish a comprehensive whitepaper, approved by the competent authority, containing detailed information about the issuer, the stablecoin, its underlying technology, risks, and redemption rights.

Transparency: Issuers must clearly disclose the redemption policy, including any fees or conditions.

Prudential Requirements: Issuers must hold a minimum amount of own funds, proportionate to the amount of stablecoins issued, to absorb potential losses.

Algorithmic Stablecoin Rules:

MiCA is primarily designed for asset-backed stablecoins. It does not provide a specific regulatory framework for purely unbacked algorithmic stablecoins.

Effectively, stablecoins that purport to maintain a stable value without holding a reserve of assets to back them are not covered by MiCA as either ARTs or EMTs and would largely be prohibited from operating at scale within the EU, as they would not meet the stringent reserve and redemption requirements. While not an explicit ban on all algorithmic mechanisms, it effectively mandates sufficient backing, making purely unbacked algorithmic models non-compliant for public issuance in the EU.

Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA)

Titles III and IV (relating to asset-referenced tokens and e-money tokens/stablecoins): 30 June 2024.

Other provisions (relating to crypto-asset service providers and other crypto-assets): 30 December 2024.

Law of 18 September 2017 on the prevention of money laundering and terrorist financing and on the restriction of the use of cash (AML Law)

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.

Future Regime (EU MiCA): The upcoming EU Markets in Crypto-Assets (MiCA) Regulation will introduce a comprehensive, harmonized licensing regime across the EU for a much broader range of crypto-asset services. This will supersede the current national AML-driven registration frameworks for many activities.

Explicit Mandate: MiCA explicitly mandates the segregation of client assets.

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.

Corporate Income Tax: 25% (standard) for businesses.

Miscellaneous Income: 33% for speculative gains.

Professional Income: Progressive personal income tax rates (up to 50%+) for professional activity.