Belgium Bans Virtual Derivatives

[franky1]

From you, I am not picking up the distinct odor of unfettered idealism. It's the principle, man - the principle!

the principle that they dont want to regulate bitcoin...?
the principle that they dont want to offer money transmission licences for bitcoin businesses... ?
the principle that they want to keep their FIAT bait and switch tricks within their own non bitcoin boys clubs?
the principle that nothing stops people from buying bitcoin normally.. and then using bitcoin however people please?

all i see as being banned is FIAT paying EFT's that have a bitcoin hoard in the middle of it. basically no belgium winklevoss clones asking for Euro's for their shares.

which to me does not affect bitcoins usage or growth, just prevents FIAT investors making more FIAT.

[Peter R]

Wait a second, when the say "derivatives based on virtual currencies" do they mean derivatives that trade as traditional assets where crytpo is the underlying?  Or do they mean derivatives issued through a process such as coloring coins, where the underlying is, for example, USD?

[bluemeanie1]

as I mentioned above I think this is direct response to ShortNXT.

-bm

[wachtwoord]

Wait a second, when the say "derivatives based on virtual currencies" do they mean derivatives that trade as traditional assets where crytpo is the underlying?  Or do they mean derivatives issued through a process such as coloring coins, where the underlying is, for example, USD?

I'm pretty sure they mean the former (and don't even comprehend the latter).

[LostDutchman]

so far I'm pretty sure not a single person in this thread actually knows what a Derivative is.

-bm

Wrongo, Boyo!

[bluemeanie1]

btw - rumor has it they are releasing an entire suite of Forex Futures on NXT.

-bm

[LostDutchman]

Now let me see here...........................

The Belgians.

Is that the same lot who many years ago claimed to own a place in Africa called the Belgian Congo?

Yeah.

Oh, wait.

Excuse me.

It was the King of The Belgians who claimed that one and of course in order to support that claim, he ordered the slaughter of hundreds of thousands of locals and virtually enslaved millions.

And we are concerned about what Belgium thinks, just why?

[5flags]

And we are concerned about what Belgium thinks, just why?

Because they make my favourite beer, Hoegaarden. This alone makes Belgium more important than pretty much any other European state, except the one that I happen to be in at any one time.

[2kman]

Great chocolate as well - what else do you need? Beer and chocolate!

Anyway, apparently it will be illegal to offer a financial product which derives its yield, value from virtual currency, but only to non-professional clients.

This seems to be about consumer protection more than anything else.

[LostDutchman]

And we are concerned about what Belgium thinks, just why?

Because they make my favourite beer, Hoegaarden. This alone makes Belgium more important than pretty much any other European state, except the one that I happen to be in at any one time.

Well, there is that I guess.

[zimmah]

I know what derivatives are, but i'm not sure bitcoin needs them.

[edmundedgar]

From you, I am not picking up the distinct odor of unfettered idealism. It's the principle, man - the principle!

the principle that they dont want to regulate bitcoin...?
the principle that they dont want to offer money transmission licences for bitcoin businesses... ?
the principle that they want to keep their FIAT bait and switch tricks within their own non bitcoin boys clubs?
the principle that nothing stops people from buying bitcoin normally.. and then using bitcoin however people please?

all i see as being banned is FIAT paying EFT's that have a bitcoin hoard in the middle of it. basically no belgium winklevoss clones asking for Euro's for their shares.

which to me does not affect bitcoins usage or growth, just prevents FIAT investors making more FIAT.

If I'm reading the thread right this would also affect people doing useful commerce in bitcoin by preventing them from insuring themselves against changes in the price that affect them adversely. For example, if you're earning bitcoins but you need to pay your suppliers in euros, you'd want to short bitcoins to reduce your exposure. That way you'd give up part of the gains you make if the value of the bitcoin suddenly increased, but if the value of the bitcoin dropped, you'd still be able afford to pay your bills.

The result is exactly the opposite of what the regulators say they're trying to achieve, because the vendor ends up much more exposed to currency volatility than they could be.

[freedomno1]

This seems like an interesting legal decision I wonder how they came to that decision legal process.
That said if it is only derivatives that isn't so bad as an outright ban on virtual currencies.
So no Bitcoin futures trading fund etc.

Congrats you beat bitlegal on this one just hope it doesn't turn into a trend
http://bitlegal.net/nation/BE.php

[bluemeanie1]

From you, I am not picking up the distinct odor of unfettered idealism. It's the principle, man - the principle!

the principle that they dont want to regulate bitcoin...?
the principle that they dont want to offer money transmission licences for bitcoin businesses... ?
the principle that they want to keep their FIAT bait and switch tricks within their own non bitcoin boys clubs?
the principle that nothing stops people from buying bitcoin normally.. and then using bitcoin however people please?

all i see as being banned is FIAT paying EFT's that have a bitcoin hoard in the middle of it. basically no belgium winklevoss clones asking for Euro's for their shares.

which to me does not affect bitcoins usage or growth, just prevents FIAT investors making more FIAT.

If I'm reading the thread right this would also affect people doing useful commerce in bitcoin by preventing them from insuring themselves against changes in the price that affect them adversely. For example, if you're earning bitcoins but you need to pay your suppliers in euros, you'd want to short bitcoins to reduce your exposure. That way you'd give up part of the gains you make if the value of the bitcoin suddenly increased, but if the value of the bitcoin dropped, you'd still be able afford to pay your bills.

The result is exactly the opposite of what the regulators say they're trying to achieve, because the vendor ends up much more exposed to currency volatility than they could be.

that's an interesting theory, and certainly if we did have an options market the price would be much more stable and it would be easier to conduct commerce in Bitcoin.

-bm