New Restrictions on Virtual Asset Activities
In a recent public notice, the FSC, via document FSC/2/PN/012, outlined new rules concerning virtual assets under the Financial Services Commission Act, Act No. 8 of 2023.
The Act strictly forbids business conduct involving virtual assets (which include cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and certain in-game currencies) without a license. It also covers negotiating, brokerage, exchanging, transferring, and managing virtual assets.
Moreover, until the 31st day of December 2025, the FSC will not issue any licenses for these virtual asset activities. Those conducting such operations before the Act’s commencement (15th April 2023) must inform the Commission and cease their activities within specified timelines.
Failure to adhere to these regulations could result in criminal sanctions under Section 81(6) and (7) of the Act. Thus, staying informed about these updates is crucial if you’re involved in virtual asset activities.
Advertisement Restrictions
The FSC has also shed light on restrictions related to advertising in the public notice FSC/3/PN/013. According to Section 74 of the Act, no one except a person licensed, authorised, or approved under the Act should publish any advertisement connected with activities requiring a licence, approval, authorisation, or registration.
Additionally, those who are licensed, authorised, or approved should not publish advertisements that are unclear, false, or misleading. Violations can result in the FSC imposing administrative sanctions, including monetary fines.
Restrictions on Providing Licensed Activities
Lastly, according to public notice FSC/3/PN/014, no person can provide the business of a financial service provider, registered agent, or managing services within Belize without a valid license from the Commission under the Act.
This rule applies regardless of any other Act, statute, regulation, or law. Breaching these regulations constitutes an offence and can lead to penalties under Section 23(2) of the Act. The Commission can also pursue criminal sanctions against any entity that violates the Act.
In conclusion, the FSC’s recent updates highlight the importance of ensuring compliance with all regulatory standards if you’re operating in or dealing with the financial sector in Belize. The public and stakeholders are responsible for staying updated on these restrictions related to virtual asset activities, advertisements, and the provision of licensed activities.
Should you like to know more about Belize's companies, please do not hesitate to contact us at Contact@viss.com.hk.
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