• Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of crypto ad regulations by May 17.
• Companies sponsoring crypto advertisements in Belgium must submit to its financial regulator FSMA before any campaign.
• Recent market research showed that most crypto investors are in it for the money, and 80% are men.
Belgium Introduces New Crypto Advertisement Regulations
Coming Into Effect in May
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. The official Gazette published on March 17 indicated that the regulation will require advertisements for cryptocurrency products to be accurate and contain mandatory risk information. Additionally, companies sponsoring the ads must submit them to FSMA prior to launching any campaign targeting at least 25,000 customers.
Research Highlights Male Preferences for Crypto Investing
A recent FSMA market research showed that most crypto investors in the country are in it for the money, and 80% are men. Despite the recent collapse of FTX and an overall bearish trend across markets this winter, investors continue to pour funds into cryptocurrencies.
Opinion Divided Over Cryptocurrencies in Belgium
While Belgian authorities have implemented restrictions on crypto ads, former minister Johan Van Overtveldt has called for a total ban on cryptocurrencies due to instability in the banking sector. However, other countries like the United Kingdom have also imposed similar restrictions without outright banning digital assets.
Protecting Consumers Through Education & Supervision
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.“
Belgium’s upcoming regulations provide a framework ensuring accuracy of advertising with regards to virtual currencies as well as protecting consumers through education and supervision from potential risks associated with investing in cryptocurrencies .