Benzinga - Belgium‘s Financial Services and Markets Authority (FSMA) issued a mandate on Monday about cryptocurrency firms in the country that trading in virtual currencies is risky and “the only guarantee in crypto is risk.”
The FSMA, which was recently given powers to regulate Belgium’s cryptocurrency industry’s marketing, wants firms to not promise any guaranteed returns and explicitly state all risks and conditions.
“Virtual currencies are all the rage at the moment, but they involve considerable risk. There is no legal framework yet governing these products, and they have no underlying assets in the ‘real’ world. They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks,” the FSMA stated.
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The organization added that all advertisements should be accurate and not in any way mislead people, contain mandatory information and the FSMA be notified in advance for any mass media campaigns.
“In addition to these conditions, advertisements must also contain a short and punchy warning: 'Virtual currencies, real risks. The only guarantee in crypto is risk.' All advertisements must also contain a broader warning or a link or reference to such a warning. The broader warning should sum up the various risks in greater detail,” it further stated.
The FSMA added that according to its own survey, people invest in cryptocurrencies to get rich overnight.
The new rules will take effect from May 17.
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