Belgium is set to introduce a new regulation for cryptocurrency advertisements, in a move to protect consumers from fraudulent practices. The regulation will require crypto ads to be marked with a warning label stating that the investment carries risks, and must also include information on the identity of the advertiser. The new rules are in line with the European Securities and Markets Authority’s guidelines, and are aimed at promoting greater transparency and accountability within the cryptocurrency industry. The regulation is expected to come into effect in the coming weeks, and will be enforced by the Financial Services and Markets Authority.
Belgium’s FSMA to Introduce New Regulations for Crypto Ads
Belgium’s Financial Services and Markets Authority (FSMA) has announced the implementation of new regulations for crypto ads, effective May 17. The country’s official Gazette revealed that the adverts need to be accurate, containing mandatory risk information. Additionally, companies sponsoring such advertisements must submit them to FSMA before any mass campaign. Thus, ads targeting at least 25,000 customers must be in tandem with the regulators’ guidelines.
FSMA’s Chairman, Jean-Paul Servais, stated that the new rules will enable the authority to supervise and educate consumers better. This way, the agency can ascertain whether virtual currency ads are accurate and contain the mandated warning signs of risk. In recent Market research, the FSMA discovered that most Belgian crypto investors are male and invested in the digital currency to make money. Despite the decline of the FTX market and the inadvertent crypto market winter, Belgian investors remain undaunted.
Belgium joins a growing list of European nations, such as the UK, that have instituted restrictions on crypto advertising. However, the recent turmoil in the banking sector has led to calls for a total ban on cryptocurrencies by former Belgian minister, Johan Van Overtveldt.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. The information contained within this article should not be taken as investment advice. Investors engaging in buying and trading cryptocurrencies do so at their risk, and thorough due diligence is required.