Major advertising campaigns will need to be reported to the Financial Services and Markets Authority since a poll shows that many cryptocurrency investors want to get wealthy quickly.
Cryptocurrency advertisements in Belgium must be truthful and alert investors to the risks under new rules published by the nation’s financial regulator on Monday.
The Financial Services and Markets Authority (FSMA) must be notified 10 days in advance of any mass-media campaign to promote a digital currency under new regulations that were published in Belgium’s Official Gazette on Friday. This gives the regulator time to take action if necessary.
“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 FSMA said in a statement.
The main motivation for cryptocurrency trading is the potential for immediate financial gain, according to an FSMA survey, and investors have not been discouraged by the crypto winter or the demise of the cryptocurrency exchange FTX.
The sole certainty in cryptocurrency is risk, per the new guidelines, which go into effect on May 17. In establishing limitations on promotional campaigns, which frequently mimic those already in place for traditional banking, Belgium joins other European nations like Spain and the U.K.