Belgium’s financial watchdog, the Financial Services and Markets Authority (FSMA), has issued a warning against the unauthorized activities of multiple cryptocurrency platforms that are offering investments in the country without complying with Belgian financial legislation.
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.
Other European regulators have also been skeptical about cryptocurrencies and see them as a threat to financial stability. The UK FCA has recently warned against unregistered brokerage firms that appear to be offering cryptocurrency-related derivatives in the country.
Based on its investigation, the FSMA said 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 hreceived 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.
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.
FSMA operates as a watchdog for financial trading, securities, and markets in Belgium, overseeing a variety of assets and compliance issues for traders and consumers. Today’s warning is the latest initiative in its efforts to clamp down on companies engaging in fraudulent activities.
The latest additions are:
Based on this, the FSMA strongly advises against responding to any offers of financial or recovery services made by the companies listed above and against transferring money to any account number they might mention.