Belgian Regulators Introduce New Rules Requiring Crypto Ads To Warn Of Risks

Key Points:

• Belgian regulator, the FSMA, introduces new laws for accurate crypto ads and investor warning.
• FSMA survey reveals investors in Belgium are often motivated by the prospect of making a quick profit.
• Under the new rules, any mass media campaign promoting digital currency must be submitted to the FSMA ten days in advance.
• Ads must include a warning that “the only guarantee in crypto is risk” to combat risks associated with crypto investing.
• The FSMA aims to protect investors and prevent them from making costly mistakes by requiring accurate and informative advertising.

Belgian regulator, the Financial Services and Markets Authority (FSMA), has announced new laws requiring accurate crypto ads and warning investors of the risks involved. The move follows a recent FSMA survey revealing that crypto investors in Belgium are often motivated by the prospect of making a quick profit, as per CoinDesk.

Under the new rules, any mass media campaign promoting digital currency must be submitted to the FSMA ten days in advance, allowing the regulator to intervene if necessary. The rules will take effect on May 17, and failure to comply could result in fines.

The FSMA study found that the chance to make money quickly was the leading reason why people traded in virtual currencies, with investors seemingly undeterred by the volatility of the market or the collapse of major exchanges such as FTX.

To combat the risks associated with crypto investing, ads must now include a warning that “the only guarantee in crypto is risk.” Similar restrictions on publicity campaigns are already in place for traditional finance in countries such as Spain and the UK.

In light of the increasing popularity of virtual currencies, the FSMA is keen to ensure that investors are fully aware of the risks involved. Virtual currencies are subject to wild price fluctuations and are vulnerable to fraud and IT-related risks. By requiring accurate and informative advertising, the regulator hopes to protect investors and prevent them from making costly mistakes.

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