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Belgium Takes Aim At Misleading Crypto Ads With New Regulations

Key Points:

Belgium’s Financial Services and Markets Authority (FSMA) is set to implement new crypto ad regulations by May 17.
FSMA Chairman Jean-Paul Servais emphasized the need for better consumer protection, stating that the organization is ramping up supervision and financial education.

Belgium’s Financial Services and Markets Authority (FSMA) is set to implement new crypto ad regulations by May 17. The move comes after the Official Gazette of Belgium published on March 17, indicating that crypto ads must be accurate and contain mandatory risk information.

Under the new rules, companies that sponsor crypto ads must submit them to FSMA before launching any mass campaign. This means that ads targeting at least 25,000 customers must be submitted to the regulator for review. The purpose of this regulation is to protect consumers and ensure that advertisements for virtual currencies are accurate and not misleading, with compulsory warnings of risk.

FSMA Chairman Jean-Paul Servais emphasized the need for better consumer protection, stating that the organization is ramping up supervision and financial education. He believes that the new regulations will enable the FSMA to check the accuracy and truthfulness of crypto ads.

Market research conducted by FSMA revealed that most Belgian crypto investors are driven by the potential for profits, with 80% being male. Despite the recent collapse of FTX and the subsequent crypto market downturn, investors remain undeterred.

Belgium is the latest European country to introduce new crypto ads regulations. Other countries like the United Kingdom have also imposed restrictions on crypto ads. A former minister of the country Johan Van Overtveldt recently called for a total ban on cryptocurrencies amid the recent turmoil in the banking sector.

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Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.