Belgium’s financial regulator has been tasked by the government with regulating cryptocurrency advertisements. The new rules, which will take effect in May, require advertisers to clearly warn investors about the risks associated with digital assets.
Belgium is ready to protect consumers from misleading crypto ads
Belgian Authority for Markets and Financial Services (FSMA) has been given powers to strictly regulate crypto-themed advertising. The new rules, which will apply in less than two months, aim to ensure that risks related to virtual currencies are “prominent enough” in such announcements, the regulator said in an announcement on Monday.
A respective regulation issued by the FSMA, which will monitor compliance, was published in the Belgian Official Gazette on March 17 and will come into force on May 17, 2023. It prescribes that crypto-related advertisements must be accurate and not misleading when point out the risks.
It also requires that FSMA be notified in advance of mass media campaigns, those that serve ads to at least 25,000 consumers. Prior notification would allow the regulatory body to intervene before the start of such campaigns if it deems it necessary.
“Advertisements cannot emphasize potential benefits without also providing an accurate indication of risks, limitations, or conditions. The announcements may not contain statements about the value or future performance, and must be written in an understandable language, “clarified the authority.
One of the rules that complement these conditions is that cryptocurrency advertisements must contain a “brief and forceful warning”, stating: “Virtual currencies, real risks”. The only guarantee in crypto is risk.” In addition, they will need to include, reference, or link to a broader warning that lays out the various risks in detail.
The FSMA also intends to do more when it comes to financial education on digital assets. He is currently producing a series of videos dedicated to virtual currencies aimed at young people. These are part of an educational pack that also includes an information sheet for teachers and a questionnaire for students.
The financial authority’s regulatory move comes after former Belgian Finance Minister Johan Van Overtveldt last week called on governments to ban cryptocurrencies amid a banking crisis involving two crypto-friendly banks. It also follows the publication of an article in which the head of the Dutch financial regulator promised strict treatment of crypto companies under the EU’s Markets in Crypto Assets (MiCA) law.
What do you think about the upcoming crypto advertising rules in Belgium? Tell us in the comment section below.
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