TL;DR Breakdown
- Crypto ads in Belgium must now adhere to new laws announced by the country's financial regulator, the Financial Services and Markets Authority (FSMA), on Monday.
- All mass-media campaigns to promote digital currencies are required to be submitted ten days ahead of distribution, according to the new law.
Crypto ads in Belgium must now adhere to new laws announced by the country’s financial regulator, the Financial Services and Markets Authority (FSMA), on Monday. As outlined in powers published in Friday’s edition of Belgium’s Official Gazette, all mass-media campaigns to promote digital currencies are required to be submitted ten days ahead of distribution, allowing the FSMA to intervene if necessary. In addition, the regulator warned investors of the potential risks associated with these assets, highlighting their “considerable risk” due to “wild price fluctuations” and “vulnerability to fraud and IT-related risks.”
The FSMA study found that the potential to make money quickly was cited as the primary motivation behind trading in virtual currencies, despite the crypto winter or collapse of crypto exchange FTX. To protect investors from misleading advertising, Belgium is implementing new rules on May 17th, which require ads to state that “the only guarantee in crypto is risk.” This follows in the footsteps of other European nations like Spain and the U.K., who have already instituted similar regulations for traditional finance.
