• Belgium’s Financial Services and Markets Authority (FSMA) is introducing a new set of crypto ad regulations.
• Companies sponsoring crypto advertisements must submit to the regulator before any campaign that reaches 25,000 customers or more.
• 80% of Belgian crypto investors are male and the recent market crash has not deterred them from investing.
Belgium to Introduce New Crypto Ad Regulations
Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of crypto ad regulations by May 17, according to Finance Magnates. This regulation requires that all companies sponsoring crypto advertisements in Belgium submit their ads to the regulator before any mass campaign targeting at least 25,000 customers.
Accurate Ads with Mandatory Risk Information
The Official Gazette published on March 17 shows that the new regulations mandate that all crypto ads must be accurate and contain necessary risk information for consumers. Jean-Paul Servais, chairman of FSMA, stated: “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.“
Most Crypto Investors in It for Money
A recent research conducted by FSMA revealed that most Belgian crypto investors are in it for money; 80% of these investors are male. Despite this winter’s market crash due to FTX’s collapse, these investors have not been deterred from investing in cryptocurrencies.
Other European Countries Imposing Restrictions
Belgium is only one among many European countries introducing restrictions on cryptocurrency advertising; other countries such as United Kingdom have done so as well. Former Minister Johan Van Overtveldt even called for an outright ban on cryptocurrencies recently due banking sector turbulence.
Conclusion
With this new regulation coming into effect soon, Belgium is taking steps towards protecting its citizens by ensuring accuracy in all cryptocurrency advertisement campaigns while also warning them about potential risks associated with investing in digital assets like Bitcoin and Ethereum .