Current Economic Situation in Belgium

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Belgium is facing economic challenges that could potentially boost cryptocurrency adoption, particularly due to high inflation and economic instability.

Now, as the cost of living rises and wage growth stagnates, both individuals and businesses are increasingly looking into alternative investment options, such as cryptocurrencies. 

Furthermore, the political and financial tensions between Flanders and Wallonia are creating uncertainty in Belgium's economy, leading investors to explore cryptocurrencies for stability. Additionally, Belgium's complicated government setup, with many layers of administration, can be confusing for businesses. 

As a result, cryptocurrencies are becoming an attractive choice because they simplify transactions and investments. Furthermore, Belgium's economy is heavily reliant on exports, which account for 86% of its GDP, with around 60% going to other EU countries. 

This dependence makes it vulnerable to fluctuations; however, cryptocurrencies provide a way for businesses to diversify their investments and safeguard against potential downturns. 

Fortunately, these factors have created an environment in Belgium where cryptocurrency can emerge as a viable alternative for those looking to navigate uncertainty and diversify their investments.

Current State Of Crypto Adoption in Belgium

Image source: Gocrypto

According to Statista, the cryptocurrency market in Belgium is projected to reach a revenue of US$257.1 million by 2024, reflecting the increasing interest and involvement in digital assets. 

Even though, the market is expected to show a slight decline in 2025 with a -3.19% annual growth rate (CAGR), resulting in a projected revenue of US$248.9 million, the number of users is expected to grow.

In 2024, 3.66 million Belgians are expected to be involved in the crypto market, with a 31.09% user penetration rate, further increasing to 31.17% by 2025. These figures show the growing confidence in cryptocurrency, despite global market fluctuations and regulatory changes.

Still, the average revenue per user (ARPU) in Belgium’s crypto market is expected to be US$70.6 in 2024. To put this in perspective, the United States will lead globally with a projected revenue of US$9,788.0 million in 2024. 

Although Belgium’s numbers are more modest, its consistent growth shows that the country is catching up in crypto adoption.

How Belgium Compares to Other European Countries

Country	Population investing in Crypto	Population Investing in Traditional Assets
Malta	10%	37%
Sweden	10%	60%
Greece	10%	11%
Finland	9%	42%
Hungary	8%	19%
Romania	8%	12%
Poland	8%	14%
Latvia	8%	11%
Spain	8%	27%
Denmark	8%	36%
Belgium	6%	32%
Germany	6%	33%
Italy	6%	31%

Alt text: Table comparing crypto and traditional asset adoption rates in European countries

Image Source: Visual Capitalist

When you compare Belgium’s crypto adoption to other European nations, it becomes clear that while Belgium is progressing, it still has some catching up to do. Here’s a look at the current adoption rates:

• Netherlands: 12% adoption rate
• Portugal: 12%
• Germany: 6%
• France: 5%
• Belgium: 6%

Countries like Slovenia (18%) and Croatia (16%) are leading in crypto adoption. Interestingly, wealthier nations like France and Germany have lower adoption rates because their citizens tend to invest more in traditional assets such as stocks and bonds.

However,  Belgium’s alignment with EU regulations like MiCA could boost future growth. 

This regulatory compliance might encourage more people and businesses to participate in the crypto market, helping Belgium catch up with other crypto-friendly nations.

Key Players in Belgium’s Crypto Market

Exchanges and Trading Platforms

With the way crypto is expanding in Belgium, we can see that the country’s crypto market isn’t just about individual investors anymore. 

It’s worth mentioning that key players in exchanges, startups, and even traditional financial institutions are driving growth in this sector. This means the field is getting a lot bigger, and everyone interested can find a place in it.

For example, cryptocurrency exchanges have been crucial in making digital asset trading accessible. In Belgium, a few platforms are leading the way:

UEEx

In Belgium, UEEX is becoming a go–to platform for crypto traders. Its user-friendly interface and fast transaction times make it easy for both beginners and experienced traders to buy and sell various cryptocurrencies. 

The platform’s clear fee structure and strong focus on security give Belgian users confidence in their trades. Plus, with responsive customer support, a lot of people are finding it a reliable and efficient way to manage their crypto investments. 

Binance

With thousands of Belgian users, Binance is one of the world's largest crypto exchanges. It offers a wide range of cryptocurrencies, low fees, and advanced tools, making it popular with both casual users and serious traders.

Coinbase

Another well-known exchange, Coinbase is easy to use and trusted by many. It’s ideal for beginners, offering a simple interface while still providing enough options for more experienced traders.

Bitstamp

Bitstamp is another platform that’s gaining ground in Belgium. It has a strong reputation for security and reliability, which makes it a favorite for those looking for a more stable trading experience.

Innovative Startups

Belgium has also become a hotbed for blockchain innovation. Several local startups are gaining recognition both domestically and internationally:

• SettleMint: This blockchain platform provider has raised €16 million in funding and expanded its operations to other countries, helping businesses integrate blockchain into operations like supply chain management and decentralized applications.
• Venly: Venly focuses on creating blockchain wallets. They’ve teamed up with gaming companies to bring NFTs (Non-Fungible Tokens) into games, making blockchain technology more accessible to everyday users.
• Open Task Force: This platform helps businesses and experts work together on shared projects. They focus on pooling resources like equipment and securely managing transactions between everyone involved, from investors to contributors.

Traditional Financial Institutions

Even traditional financial institutions in Belgium are exploring blockchain and crypto technologies:

• KBC Bank: In 2023, KBC launched a blockchain-based coin to facilitate B2B transactions, enhancing efficiency with decentralized technology.
• Euroclear: This Brussels-based financial services company is experimenting with blockchain technology for securities settlement, streamlining processes in financial transactions.

Belgium’s Crypto Regulations

Source: .lifewithcrypto

In Belgium, as in many other countries, the approach to cryptocurrency regulation has been progressive. What’s great about this development is that it’s creating an environment that encourages growth while still providing the needed oversight and control.

Legal Status of Cryptocurrencies

Based on Freeman law reports, in Belgium, cryptocurrencies are recognised as digital assets but are not classified as legal tender.

This distinction allows their use in various financial transactions, including trading and peer-to-peer payments, while ensuring they remain subject to regulatory oversight and taxation. 

Likewise, the Financial Services and Markets Authority (FSMA) emphasises that this regulatory framework is essential for protecting consumers and maintaining market integrity.

Key Regulations Shaping the Market

• As of 2023, profits from cryptocurrency transactions are taxed at 33%, applicable to both day trading and long-term investments. While some investors have raised concerns, this tax provides clarity on the financial implications of crypto investments.
• Belgium has aligned its regulatory framework with the European Union’s Markets in Crypto-Assets (MiCA) directive. This move helps ensure that the Belgian crypto market follows EU-wide rules.
• In addition, any transactions over €1,000 must be reported to authorities to prevent money laundering and improve transparency.
• The FSMA (Financial Services and Markets Authority) has also been working closely with stakeholders to clarify the legal status of different crypto assets. Some may be classified as securities or financial instruments. 
• The FSMA has new powers to regulate advertising for virtual currencies aimed at non-professional investors to make sure consumers get better information and are protected.

Infrastructure and Business Adoption

Another important factor in crypto adoption is Belgium’s growing physical and digital infrastructure, which is making cryptocurrency more accessible to everyone. This development makes it easier to invest in crypto and perform other transactions.

Cryptocurrency ATMs

The number of crypto ATMs in Belgium has risen since 2023. For example, as of January 2024, you'll find these ATMs mainly in major cities like Brussels, Antwerp, and Ghent. They let users easily buy or sell cryptocurrencies like Bitcoin using cash.

If people can do this easily without any stringent restrictions, it means businesses can start adopting cryptocurrency more readily. 

However, it's important to note that while crypto adoption by businesses is still in its early stages, just a few online retail stores in Belgium now accept digital currencies. Additionally, businesses with international customers have integrated crypto payments to make cross-border transactions faster and cheaper

Blockchain Beyond Finance

Blockchain technology is expanding beyond finance in Belgium, with several sectors adopting decentralized technology:

• Port of Antwerp-Bruges: This major shipping hub uses a blockchain-based container release system to enhance security and transparency in cargo operations.
• Fluvius: The Belgian energy company is piloting blockchain solutions for peer-to-peer energy trading, allowing consumers to trade excess energy among themselves.

Challenges and Opportunities

Source: coinfomania

Of course, as with any emerging technology, the growth of cryptocurrency in Belgium comes with both challenges and opportunities. 

Challenges

• Regulatory uncertainty: Although Belgium has made progress, there’s still uncertainty surrounding token classification and future EU regulations.
• Price volatility: Cryptocurrencies are known for price fluctuations, which can be a deterrent for investors more accustomed to stable assets.
• Education gap: A significant portion of the population still lacks a clear understanding of blockchain and cryptocurrencies, slowing down widespread adoption.

Opportunities

• EU leadership: Belgium has the chance to take a leadership role in EU-wide crypto regulations, positioning itself as a pioneer in the European crypto scene.
• Fintech hub potential: With its growing blockchain startup ecosystem, Belgium has the potential to become a European fintech hub, attracting talent and investment.
• Cross-border transactions: Belgium’s central location and strong ties to the EU make it an ideal gateway for international crypto transactions.

Looking Ahead: What’s Next for Crypto in Belgium?

Source: Freepik

As crypto adoption continues to grow in Belgium, several exciting developments are expected in the coming years.

Future Predictions

• The crypto user penetration rate could rise to 15% by 2026 as more Belgians view digital assets as a viable investment and payment option.
• Belgium may introduce a regulatory sandbox for crypto startups, allowing new companies to test their products with fewer regulatory burdens.
• By 2030, blockchain and crypto technologies could contribute up to €2 billion to Belgium’s GDP, especially as more industries integrate decentralized technologies.

Areas to Watch

• Growth in institutional crypto products like ETFs and custodial services for digital assets.
• Increased blockchain adoption in sectors like supply chain management, healthcare, and logistics.
• New EU rules promoting digital currency transactions across member states are driving the rise of cross-border crypto payments.

Conclusion

Belgium's cryptocurrency market is evolving quickly due to economic challenges, supportive regulations, and expanding infrastructure. As more individuals and businesses explore crypto as an alternative investment, Belgium is positioned to become a key player in the European crypto market.

With rising adoption rates, innovative startups, and a forward-thinking regulatory environment, the future is bright. Belgium is ready to embrace cryptocurrency and blockchain technology, setting the stage for a more integrated financial future.