The Belgian Financial Services and Markets Authority (FSMA) will have new powers to oversee virtual currency advertising when new regulations come into force on May 17. To prepare for its new role, the agency commissioned an investor survey.
The new regulations will have three aspects. First, it will require precision and clear language, with no statements about future returns of value. Second, there will be a mandatory warning on all advertising:
“Virtual currencies, real risks. The only guarantee in cryptocurrencies is risk.”
In addition, a “broader warning should summarize the various risks in greater detail.”
Finally, campaigns with a target audience equal to or greater than 25,000 people (massive campaigns) will have to be submitted to the FSMA at least ten days in advance. “so that the FSMA can intervene, if necessary, before the actual start of the campaign.”
FSMA Introduces Rules, Launches Educational Video and Game Module to Protect Consumers Investing in Virtual Currencies
Full news: https://t.co/DrJGYVxUhU pic.twitter.com/IWAIdT6oQG
— Regxplora (by Regxelerator) (@regxplora) March 20, 2023
FSMA will also boost educational efforts through its Wikifin financial education center. PTo prepare for its new role, the FSMA commissioned in November 2022 a survey of 1,000 Belgian investors who placed money in investment products beyond savings accounts, term deposits and pensions.
More than a third (34%) of surveyed investors in the 16-29 age group bought virtual currencies, a proportion that drops to 11% in the 50-59 age group. Men represent 80% of buyers. Investors are concentrated in Flanders (63%), while only 22% live in Wallonia and 15% in Brussels.
Investments in cryptocurrencies tend to be smaller than traditional ones: sOnly 15% of investors have more than 10,000 euros in cryptocurrencies and 31% less than 500 euros. Investors in cryptocurrency relied more on the advice of friends, family, apps, and “robot advisors” than traditional investors.
FSMA started regulating cryptocurrency exchanges in May 2022. The UK has also recently imposed stricter requirements for cryptocurrency advertising.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.