Belgium Regulator FSMA Fraudulent Cryptocurrency Platforms Warning


Belgium regulator FSMA fraudulent cryptocurrency platforms warning notes that the regulator has received a number of complaints about these trading platforms that operate in the cryptocurrency industry. 

23 February, AtoZForex The financial regulator of the Belgium markets, Financial Services and Markets Authority (FSMA) has issued a warning on its website. The watchdog has noted that in the course of the recent weeks, there were a large number of new platforms emerging that offer an opportunity to invest in cryptocurrencies. The FSMA cautions investors and calls for them to be careful while dealing with these platforms.

Belgium Regulator FSMA Fraudulent Cryptocurrency Platforms Warning

The Belguim regulator also stated that very often it happens that there are fraudsters behind these platforms. According to the official statement from FSMA, the fraudsters are now using the opportunity to swindle consumers. The statement reads:

“In recent weeks, many platforms have appeared on the internet. They all use the same ruse: they claim to offer the best (or one of the best) trading platform(s), enabling both beginners and professionals to trade in cryptocurrencies in a matter of seconds and with full confidence.

‘Invest in cryptocurrencies with full confidence.’

‘Invest in digital currencies in full confidence on one of the most renowned platforms on the market.’

 ‘XXX: trading in cryptocurrencies easily accessible at last!’”

The FSMA further states that some of these platforms also offer other financial products with cryptocurrencies as the underlying asset. These include savings accounts with apparently assured returns, servicing rights or derivative products such as CFDs.

FSMA Received Complaints About Crypto Firms

However, the regulator has received a number of complaints about these trading platforms that operate in the cryptocurrency industry. The FSMA mentions that clients were mostly complaining about the following:

“that they never recover the funds invested;

or that they simply have heard nothing further from the company with which they invested their money.”

In order to avoid being defrauded, the FSMA advises to exercise prudence and to remain alert to any sign of investment fraud. The watchdog has also provided a number of recommendations in regards to this matter:

  • always verify the identity of the company (company identity, home country, etc.).
  • always ask your interlocutor for clear and comprehensible information, and take a critical attitude to the information they provide.
  • be wary of (promises of) completely disproportionate gains. Where a return seems too good to be true, it usually is.

In addition, the FSMA has published a list of the blacklisted cryptocurrency – related websites. The regulator reminds that this list is not exhaustive.

FSMA Fraudulent Cryptocurrency Platforms Warning

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