The Liberal Party of Belgium is in favor of cryptocurrencies. The party wants to promote the emergence of a Belgian crypto ecosystem by implementing flexible taxation and encouraging payments in digital currencies wherever possible. The Liberals also want the banks to make an effort.
Belgian liberals want to support the world of cryptocurrencies
At the end of July 2022, the MR (Reform Movement) disclosed the results of a study dedicated to cryptocurrencies. Produced by the Jean Gol Center owned by the party, the study draws up a list of proposals aimed at supporting the cryptocurrency ecosystem in Belgium.
Very open to the world of digital currencies, the liberal party proposes to “ support the emergence of a business ecosystem around blockchain and cryptocurrencies “, explains Georges-Louis Bouchez, president of the MR. The strong man of the party declares:
“Rather than listing all the problems and disadvantages that may arise, we prefer to position ourselves in favor of technological progress “.
The flat country matters 500,000 crypto-investors, according to the European Central Bank. 10% of Belgian households have invested in cryptocurrencies despite warnings from the Financial Services and Markets Authority (FSMA), the Belgian regulator. The Financial Constable warns of the risks of using and holding virtual currency » and points the finger at possible « substantial financial losses”.
Georges-Louis Bouchez brushes aside the regulator’s warnings. The 30-something believes that crypto investors are “ entrepreneurs like the others »which inject money into the real economy.
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An advantageous tax
Determined to defend investors, the MR recommends carry forward losses made on the sale of cryptocurrencies. Clearly, investors who sell digital currencies at a loss will not pay their taxes until three years later.
Currently, Belgian taxation in terms of cryptocurrencies is very vague. Operations that are considered good family investments evade taxes. It is not necessary to declare the profits made. Under Belgian law, a good father is a ” prudent and reasonable person”, who does not benefit from any professional experience and does not take unconsidered risks. The amount and frequency of transactions should also be limited.
If the tax authorities believe that these investments do not fall within this framework, the profits will be taxed at 33%. In this case, the activity is considered speculation. To encourage speculative activity, the MR wants to allow losses to be carried over.
Encourage cryptocurrency payments
Christophe De Beukelaer, the Belgian MP who converted his salary into Bitcoin (BTC), believes that the tax legislation in Belgium absolutely needs to be clarified. The Brussels MP believes that ” many investors do not dare to repatriate their money to the real economy, for lack of a clear framework”.
At the same time, the liberal party also wants Belgian banks to be more flexible with companies and individuals who have invested in cryptocurrency. The study recommends the establishment of a right to accounts, which guarantees that crypto-investors can open a bank account. Finally, the MR plans toencourage cryptocurrency payments in everyday life, especially on public transport.
👉 On the same subject – Belgium now regulates cryptocurrency exchange platforms
Sources: Les Echos, Center Jean Gol, FSMA
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