Regulatory Alerts2019-07-19 | NBB_2019_20Added · Updated
Circular NBB_2019_20 / Expectations Concerning Crypto-Asset Activities
The National Bank of Belgium requires Belgian insurance companies, credit institutions, securities firms, and related entities to avoid significant direct, indirect, or synthetic exposures to crypto-assets due to associated liquidity, credit, market, operational, and AML risks. Affected entities must implement enhanced due diligence, robust risk governance frameworks, and adequate capital and liquidity buffers, while disclosing significant exposures in periodic reports and notifying the regulator of existing activities by October 31, 2019. The circular mandates that institutions apply the most prudent treatment for crypto-assets in prudential reporting and demonstrates that risks are fully evaluated before engaging in such activities.