Companies sponsoring crypto advertisements in Belgium must submit to its financial regulator FSMA before any campaign, writes Oluwapelumi Adejumo.
Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of crypto ad regulations by 17 May, finance magnates reported on 20 March.
Belgium’s Official Gazette published on 17 March showed that the crypto ad must be accurate and contain mandatory risk information. The companies sponsoring the advert must submit it to FSMA before any mass campaign — this means that adverts targeting at least 25,000 customers must be submitted to the regulator.
FSMA’s chairman Jean-Paul Servais reportedly said:
“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.”
A recent FSMA market research showed that most crypto investors in the country are in it for the money, and 80% are men. The recent collapse of FTX and the inadvertent crypto market winter has not deterred investors.
Belgium is the latest European country to introduce new crypto ads regulations. Other countries like the United Kingdom have also imposed restrictions on crypto ads.
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A former minister of the country Johan Van Overtveldt recently called for a total ban on cryptocurrencies amid the recent turmoil in the banking sector.
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