The Belgian financial regulator FSMA demanded that companies engaged in cryptocurrency mention during advertising campaigns that there are no guarantees of profit in this industry and that risk factors are always present.
The regulator insists that clients of cryptocurrency firms should be notified that the virtual currency industry is able to provide only one guarantee, which is a mandatory risk. The FSMA also calls on industry representatives to remind consumers that no one is responsible for their funds.
The new rules for the activities of cryptocurrency companies in Belgium will come into force less than two months after the regulator received the authority to exercise control over the advertising campaigns of these firms.
The regulator also requires that representatives of the crypto industry not only warn their existing and potential customers about the risks, but also describe in detail the relevant factors, or add links to a detailed description of this negative side of the sphere to advertisements.
FSMA notes that currently there is a high level of popularity of cryptocurrencies, but these currencies involve significant risk. The organization also draws attention to the lack of a regulatory framework regulating the processes in this industry and the lack of basic tangible assets of sphere representatives. The regulator states that cryptocurrencies are subject to price fluctuations and are vulnerable to fraudulent activity and IT-related risks.
The FSMA must be notified of an advertising campaign designed for an audience of more than 25 thousand people at least ten days before its start. The regulator also intends to direct investments to intensify activities to inform the public about the specifics of virtual currencies. Educational videos of relevant content are planned to be broadcast in Belgian schools.
The watchdog is also working on a new game module for Wikifin Lab. This module is designed to familiarize young people with the risks associated with the use of virtual currencies. The first project is already being tested and will be launched at the beginning of the next academic year.
Jean-Paul Servais, chairman of the FSMA, says that some people want to get a quick income through trading virtual currencies, but this activity poses a big risk. He also noted that the regulator is doing everything possible in terms of supervision and financial education.
Jean-Paul Servais stressed that the new FSMA regulations will be able to check whether the advertising of virtual currencies is accurate and not misleading.
As we have reported earlier, Amazon launches in Belgium.