There are multiple unauthorized cryptocurrency platforms that are offering investments in the country without complying with Belgian financial legislation.
Hence, Belgium’s financial watchdog, the Financial Services and Markets Authority (FSMA), has issued a warning against such unauthorized platforms.
The investor alert represents the FSMA’s latest effort to police the rampant internet-based cryptocurrency schemes which operate into a zone that the watchdog regulates.
Moreover, other European regulators have been also skeptical about cryptocurrencies and see them as a threat to financial stability. The UK FCA has recently warned
against unregistered brokerage firms that appears to be offering cryptocurrency-related derivatives in the country.
According to FSMA, they said from their investigation, the scheme often includes these firms offering investment contracts and requiring their interested investors to deposit their money to a bank account or through other methods, while promising little or no financial risks.
The FSMA said it has received numerous complaints about cryptocurrency platforms as many of their clients didn’t recover the funds they invested, or simply have heard nothing further from the company after investing their money.
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Thus, to get the protections offered by the securities laws when trading digital assets, investors should use a platform or entity registered with the FSMA, the regulator said.
In addition, Belgium’s Financial Services and Markets Authority (FSMA) has recently warned about fraudulent cryptocurrency trading platforms. The agency also published a list of 19 crypto platforms it “has received questions or complaints from consumers about and has established indications of fraud,” the agency wrote.
They are 01crypto, Btc-cap, Capital-coins, Coinquick, Cryptavenir, Crypto-banque, Crypto-infos, Cryptos.solutions, Cryptos-currency, Ether-invest, Eurocryptopro, Finance-mag, Gme-crypto, Gmtcrypto, Good-crypto, Mycrypto24, Nettocrypto, Patrimoinecrypto, and Ydconsultant.