Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), has toughened up the rules on promoting cryptocurrency products.
Firms will soon be expected to clearly and visibly display warning messages that explain the high-risk nature of the investment assets.
The FSMA expects any company that advertises in the country to ensure that it complies with its rules which will put a greater emphasis on warning investors about the pitfalls of crypto investment. The new law has already been published in Belgium’s Official Gazette.
The regulator is prepared to assist companies that are looking to launch digital marketing campaigns and soon requires every such company wishing to advertise legally in the country to submit its campaign to the regulator ten days ahead of roll out. Thanks to this, the FSMA will be able to intervene if it needs to.
“Virtual currencies are all the rage at the moment, but they involve considerable risk. They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks”, the regulator explained in an official statement shared on its website.
The FSMA has gone to great lengths to understand the nature of cryptocurrency advertisement and even commissioned a study that helped it look into the collapse of FTX and consumer habits. According to the financial regulator, consumers are motivated by the “get rich fast narrative”.
It’s this pitfall that Belgium expects companies to now address head-on and make sure consumers are informed about potential dangers.
Meanwhile, Belgium has set a grace period until May 17 for companies to comply.
Looking for your next crypto casino? Check out: Bitcasino or FortuneJack.