2019 Belgium FSMA Financial Penalties Increased to €2.25 Million


2019 Belgium FSMA financial penalties increased to almost 2.25 million euros. Most fines were for disgorgement and restitution related to insider trading. Since 2013, the regulator imposed 73 administrative penalties and collected more than 18 million euros in fines.

28 January, 2020 | AtoZ Markets –  The Financial Services and Markets (FSMA) operates as a regulator for financial trading, securities and markets in Belgium. The regulator oversees a variety of activities and compliance issues for traders and consumers. FSMA collected more penalties and payments in 2019. But the total of the enforcement actions fell slightly below the average of the six previous years.

Overview of 2019 Belgium FSMA Financial Penalties

The regulator had seen a flurry of enforcement actions since 2013. Moreover, the regulator filled 73 administrative sanctions and collected more than 18 million euros fines in total.

The FSMA obtained a monetary relief of almost 2.25 million euros from 13 enforcement actions in 2019. Most of the fines came from disgorgement and restitution related to insider trading and similar manipulative behavior. The regulator record the second-highest number of cases against insiders in 2019. The seven out of 13 cases were in all European countries.

Recently, FSMA said it had received numerous complaints about cryptocurrency platforms. Many of their customers have not recovered the funds they have invested in, or have simply not heard from the company anymore after investing their money. The regulator also managed to catch up in recent months by initiating standalone actions against cryptocurrency operators.

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Belgium’s FSMA Warns Over Unregistered Crypto Platforms

In October 2019, FSMA warned the public about four binary options brokers, all of which are operating illegally in Belgium. These entities are Capital Pilots, Marketcapital, Stock Global, Trendinggraphs (Premium Systems).

Furthermore, those brokerage firms are not authorized to operate in Belgium. As of August 2016, investment firms have been prohibited from distributing binary options, some FX and CFD products in the country. The FSMA also said:

“The consumers who invested in these companies never recovered their investment. Therefore, these activities are most likely a case of investment fraud. To obtain the protections offered by securities laws when trading digital assets, investors should use a platform or entity registered with the FSMA.”

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