Belgian Financial Regulator Mandates Cryptocurrency Ads To Warn Of Risks
Cryptocurrencies have always been flagged as risky assets due to their notorious volatility, but the recent fall of banks around the world is proving that there are risks involved with every investment. The turmoil in the financial sector is a primary example of the risks associated with keeping your money with the banks. In light of this, Belgium has taken a step to warn investors of the risks associated with cryptocurrencies.
The Financial Services and Markets Authority (FSMA) in Belgium has announced that cryptocurrency ads are required to state that “the only guarantee in crypto is risk.” This is aimed at making sure that investors are aware of the risks involved in investing in cryptocurrencies. According to the Belgian financial regulator, cryptocurrency ads in the country should warn investors of the accurate risks involved with cryptocurrencies.
JUST IN: 🇧🇪 Belgium to require all #cryptocurrency ads to state: "the only guarantee in crypto is risk."
— Watcher.Guru (@WatcherGuru) March 20, 2023
Protecting Investors
In addition, the FSMA has also stated that any mass media should provide details of the ad campaign ten days prior to the regulator. The authority is also asking for greater transparency from the cryptocurrency industry. “Virtual currencies are all the rage at the moment, but they involve considerable risk,” the FSMA said in a statement.
The FSMA conducted a study that revealed that the primary reason for individuals trading in cryptocurrencies is to make quick money. This is likely because of the hype around cryptocurrencies and the promise of getting rich quickly. However, the FSMA is now warning investors that investing in cryptocurrencies comes with significant risks.
Increasing Crypto Transparency
The new rules by the FSMA will take effect on May 17, and the regulator hopes that this will increase transparency in the industry and reduce the number of individuals who are investing in cryptocurrencies without fully understanding the risks involved.
The recent fall of banks has shown that there are risks involved with every investment. Cryptocurrencies have always been known to be risky assets, but now more than ever, investors need to be aware of the risks associated with these digital assets. Belgium’s move to require greater transparency in the cryptocurrency industry is a step in the right direction and may serve as a model for other countries.
