Fintech 2025

BELGIUM Trends and Developments Contributed by: Tom Van Dyck and Louise Verstraete, Liedekerke Wolters Waelbroeck Kirkpatrick

Blockchain Adoption Beyond Crypto Tokenisation of financial instruments Belgian enterprises, banks and professional ser - vices firms have steadily advanced blockchain initiatives beyond crypto trading. Tokenisation of financial instruments, such as bonds and equi - ties, is increasingly being focused on. Issuers benefit from automation in settlements, while investors may access fractional ownership. FSMA guidance on classification of crypto In that context, it is noteworthy that the FSMA published in 2022 guidelines on the classifica - tion of crypto as a security, investment instru - ment or financial instrument. Notable Fintech Businesses and Cases Keyrock: liquidity and market-making Founded in Belgium in 2017, Keyrock has become a leading liquidity provider for digital assets, partnering with global exchanges. Their continued growth through 2024 demonstrates Belgium’s capacity to incubate specialised cryp - to fintechs. Bit4You: restructuring challenges The challenges faced by Bit4You, which had to suspend activities in 2023, illustrate the need for crypto-asset platforms to maintain robust gov - ernance, solvency reserves and reliable opera - tional partners. Although a negative example for the market, it underscores regulators’ focus on ensuring consumer confidence and the impor - tance of safeguarding client funds. The FSMA used the incident to remind all market players of the severe consequences of lapses in opera - tional resilience. Traditional players entering fintech Belgian banks and insurers continue to expand their fintech offerings:

a dedicated EU Anti-Money Laundering Author - ity (AMLA). These proposals aim to harmonise rules across member states, reduce regulatory arbitrage and strengthen enforcement against money laundering and terrorist financing. Belgian AML requirements and FSMA guidance Belgium imposes stringent AML/KYC obliga - tions on financial and non-financial institutions alike. Fintech companies that fall in scope of these obligations – including CASPs and pay - ment institutions – must: • conduct customer due diligence (CDD) pro - portionate to the risk profile; • monitor transactions on an ongoing basis; and • report suspicious transactions to the Belgian Financial Intelligence Processing Unit ( Cellule de Traitement des Informations Financières CTIF-CFI). The FSMA and the NBB remain vigilant in super - vising AML compliance among fintechs. The NBB has published clear guidelines, with inter - pretations, and frequently updates these guide - lines on its website, stressing the importance of a robust risk-based approach, especially for digital businesses that onboard customers remotely. Technological solutions and challenges Belgian fintechs are increasingly embracing regtech solutions for digital onboarding, iden - tity verification and transaction monitoring. For example, solutions that integrate advanced biometrics or blockchain-based identity proofs are gaining traction. However, these solutions must align with Belgium’s privacy laws (eg, the General Data Protection Regulation; GDPR) and the recently bolstered AML requirements.

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