• Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new crypto ad regulation by May 17.
• Companies sponsoring crypto advertisements must submit it to FSMA before any mass campaign — this means that adverts targeting at least 25,000 customers must be submitted to the regulator.
• A recent FSMA market research showed that most crypto investors in the country are in it for the money, and 80% are men.
Belgium Introducing New Crypto Ad Regulations
Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of cryptocurrency advertisement regulations by May 17. The official gazette published on March 17 stated that all ads must be accurate and contain mandatory risk information.
Submission Requirements for Companies
Companies sponsoring these advertisements must submit them to FSMA before any mass campaign — this means that adverts targeting at least 25,000 customers must need to be approved by the financial regulator. According to Jean-Paul Servais, the chairman of FSMA: “To better protect consumers, the FSMA is stepping up the pace when it comes to supervision and financial education. Thanks to the new regulation, the FSMA will be able to check whether advertisements for virtual currencies are accurate and not misleading and whether the advertisements contain the compulsory warnings of risk.“
Crypto Investors In Belgium
A recent study conducted by FSMA revealed that most investors in Belgium have entered into cryptocurrency trading for financial gains — with 80% of them being male. Despite FTX’s collapse earlier this year followed by an inadvertent market winter, investors remain undeterred from entering into cryptosystems.
Other Countries Following Suit
Belgium is not alone in introducing such regulations as other countries like United Kingdom have also imposed restrictions on crypto ads as well as calling for total bans on cryptocurrencies altogether due to recent banking sector turmoil.
Conclusion
In conclusion, with more countries following suit in introducing new regulations regarding cryptocurrency ads, there appears no signs of slowing down when it comes towards consumer protection within this space going forward.