• Belgium’s financial watchdog has updated the country’s crypto rules, requiring all primary commercial crypto campaigns to warn users of the risks associated with investing in crypto.
• The rule applies to everyone engaging in either professional or occasional commercializing cryptocurrencies in Belgium, and it focuses heavily on influencers who have been avoiding some scrutiny.
• Advertisers are required to add a compulsory phrase that reads “Virtual currencies, real risks. The only guarantee in crypto is risk.”
Belgium Introduces New Crypto Ad Rules
Belgium’s fiscal watchdog, the Financial Services and Market Authority (FSMA), has updated their country’s crypto rules which mandate that all primary commercial crypto campaigns must warn users of the risks associated with investing in crypto. This new regulation applies to anyone engaging in either professional or occasional commercializing cryptocurrencies in Belgium and will take effect on May 17th, 2023. Influencers have been especially targeted by this rule as they have been dodging some scrutiny previously.
The content regulations require commercials to be accurate and non-misleading while also making sure they are recognizable as coherently associated with any risks involved without obscuring or diluting them. Speculative value regarding profits is prohibited while technical jargon should be avoided when providing information related to the coin being advertised.
Compulsory Disclosure Phrase
Advertisers are required to add a compulsory phrase that reads “Virtual currencies, real risks. The only guarantee in crypto is risk.” This statement should follow any advertisement broadcasted related to cryptocurrency investments and outline proper warnings for investors about any risks involved with said investment before obtaining any profits from it .
Surveying Crypto Investors
The FSMA has conducted a survey incriminating crypto investors for engaging in get-rich-quick schemes which may increase the chances of failure for those investing without proper knowledge about the risks involved due to lack of warning given beforehand . It is essential for investors both familiar and unfamiliar within this sector understand what they are getting into before entering such an unpredictable market .