Companies Involved in Virtual Asset Activities Required to Notify FSC and Cease Operations

The Belize Financial Services Commission (FSC) has enacted a public notice, FSC/2/PN/012, titled "Restriction on Virtual Assets Activities" on May 25, 2023. The official document provides crucial information about the country's evolving regulatory landscape with respect to virtual assets. You can read the full text of the public notice here.

In line with the Financial Services Commission Act, Act No.8 of 2023 - Belize ("FSC Act"), a virtual asset is defined as any digital representation of value that can be digitally traded, transferred, or used for payment or investment purposes. Virtual assets include cryptocurrencies, stable-coins, non-fungible tokens (NFTs), and in-game currencies that can be used outside their source game. However, this does not apply to digital representations of fiat currencies.

Companies who were engaged in an activity or operation referred to in Section 81(1) of the FSC Act prior to its enactment (April 15, 2023), must comply with the following:

1. Notify the Commission in writing within one month of the Act's commencement, indicating the nature of the activity or operation. Notifications should be sent to compliance@belizefsc.org.bz.
2. Cease the relevant activity or operation within three months of the Act's commencement.

Those who have not yet complied with the first requirement must do so before June 25, 2023.

The Belize FSC is urging businesses currently engaged in virtual asset activities to inform the Commission in writing at compliance@belizefsc.org.bz at the earliest possible date. Compliance by June 25, 2023, is vital to avoid potential regulatory penalties. This development is a clear signal of increased regulation in the field of virtual assets, underscoring the importance of businesses to stay abreast of new regulations to remain in compliance.

For more details, visit the official Belize FSC website.