Belgium’s Fintech Regulatory Landscape: A Growing Focus on Innovation and Supervision
In recent years, Belgium’s financial regulators have identified FinTech as a key theme in today’s financial markets. This shift towards innovation and supervision is crucial for the growth of the fintech industry.
What is FinTech?
FinTech refers to start-ups or established firms that use technology to offer innovative processes, products or services in the financial sector. Some examples of such innovations include:
- Applications based on artificial intelligence and big data
- Distributed ledger technology
- Crypto assets
- Mobile payment solutions
- Alternative distribution models or financing platforms
- Claims management and the fight against fraud in the insurance sector
Supervision and Regulation
In response to this growing trend, the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) have been working together since 2016 to inform market players active in Belgium about the supervision - and its regulation - of their innovative financial services and products.
The FSMA and NBB participate in European and international networks of supervisors who are committed to monitoring, coordinating and, where appropriate, supporting financial innovation in their respective markets. This collaboration is essential for ensuring that fintech companies operate within a secure regulatory framework.
Guidance for FinTech Companies
The FSMA and NBB offer fin-tech companies (both start-ups and established firms) the opportunity to contact them directly for guidance on specific supervisory rules, policies and authorisation procedures. This support is crucial for helping fintech businesses navigate the complex regulatory landscape.
Crypto-Assets and Regulatory Framework
The FSMA has been receiving an increasing number of questions about the application of financial rules to crypto-assets. In response, the authority has drawn up a communication outlining a stepwise plan that serves as a guideline for classifying crypto-assets. For market participants interested in European initiatives in this area, the EU Digital Finance Platform is a valuable resource.
Conclusion
Belgium’s fintech regulatory landscape is shifting towards greater focus on innovation and supervision. As the industry continues to evolve, it is essential for market players to stay informed about the latest developments and regulations affecting their businesses. By working together with regulators and staying up-to-date with changing regulations, fintech companies can thrive in this exciting and rapidly developing sector.