The Belgian Financial Services and Markets Authority (FSMA) has announced new regulations governing cryptocurrency advertising/promotions within its jurisdiction, set to take effect on May 17, 2023.
The rules focus on three main aspects:
- Ensuring advertisements are accurate and non-misleading
- Mandating the inclusion of risk information in ads
- Requiring crypto companies to notify FSMA before launching any mass campaigns
According to the Belgian Official Gazette published last Friday, crypto ads must include specific risk information while promoting the benefits of cryptocurrencies. Ads should feature a concise warning, as well as a more comprehensive warning or a link/reference to one. The regulator defines mass campaigns as any promotional activity targeting at least 25,000 consumers.
FSMA Chairman Jean-Paul Servais stated, “Some consumers want to earn money quickly by trading in virtual currencies. This goes hand in hand with great risks. In order to better protect consumers, the FSMA is stepping up the pace when it comes to supervision and financial education.”
Another lesson to be learned from the current banking commotion. Enforce a strict ban on cryptocurrencies. Speculative poison and no economic or social added value. If a government bans drugs, it should also ban cryptos.
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Suggested Reading on related topic – Former Belgian Finance Minister compares Crypo to Drug asking for a Crypto Ban
Conclusion
The regulatory action comes after an FSMA-conducted survey in November 2022 involving 1,000 investors. The research, in collaboration with IPSOS, revealed that 80% of crypto investors are male. Belgian sentiment towards the market remained largely unaffected, with only 7% of respondents saying they would never trade cryptocurrencies due to these events. Only 15% purchasing over €10,000 worth of virtual currencies possible because Belgium has a smaller crypto investor base compared to other countries.
Servais emphasized the importance of the survey results in guiding FSMA’s actions and reaffirmed the agency’s commitment to a proactive approach in this area.
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