Belgian Watchdog Updates Blacklist Of Crypto-Related Businesses

Belgian Watchdog Updated Blacklist Of Crypto-Related Businesses

Belgium’s Financial Services and Markets Authority (FSMA) has updated its blacklist of cryptocurrency-related websites associated with fraudulent activity.

According to FSMA announcement, the watchdog made the update following a number of complaints from Belgian-based users who were dealing with fraudulent investment offers in digital currencies. Following the latest revision, the list of the FSMA now includes a total of 141 websites offering services relating to cryptocurrency.

Awareness of Crypto-Related Risks

Furthermore, the FSMA warned that the list is based on customer reports and the agency’s own findings, meaning it doesn’t include all the crypto-related businesses that may be operating illegally in Belgium.

Previously, the FSMA issued similar warnings to investors in cryptocurrency, outlining that they should be wary of companies claiming to hold authorizations from supervisory authorities, “This is a very frequently used technique. However, these are often cases of identity theft. Feel free to ask the FSMA to confirm the information you have received,” the agency said then.

Belgian FPS Economy rolled out a web site in June 2019 to raise awareness of the risks associated with crypto investments. Belgian investors had reported to the FPS in 2018 the loss of € 2.2 million ($2.5 million) in crypto-scams.

The FPS said this was “just the tip of the iceberg” as only 4 percent of cases of crypto fraud were reported. Investors in Belgium lose around € 130 million ($152 million) each year to crypto-scams according to their estimates.

FSMA Blacklist Of Crypto-Related Businesses Updated

Country authorities around the world are providing information support for investors in cryptocurrency in a bid to insure them from potential losses. In January, in the US state of Texas, the State Security Board included cryptocurrencies in its list of top threats to investors.

 “Promoters’ claims of ‘secure’ cryptocurrency-related investments and ‘guaranteed’ profits should be approached with caution: Cryptocurrencies tend to be extremely volatile and investors may be unable to quickly liquidate products tied to them.”

Meanwhile, Randal Quarles, Chair of the Financial Stability Board, has expressed his concerns about how quickly digital currencies affect the global economy while regulatory action struggles to keep up.

Cryptolydian reported earlier that, Italy’s market regulator has belittled blockchain technology, especially as it decided to block several forex and crypto websites.

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Abdulhay Mahmoud 414 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.