The FSMA’s Updated Blacklist
Belgium’s Financial Services and Markets Authority (FSMA) has recently expanded its watchlist, adding 141 cryptocurrency-related websites tied to dubious activities. This update comes on the heels of numerous complaints from local users who were ensnared by tempting offers of digital currency investments that turned out to be scams.
Raising Alarm on Cryptocurrencies
The FSMA cautions that their blacklist is not exhaustive. It’s based on user reports and their own investigations, which means many rogue entities might still be operating under the radar. They advise investors to be skeptical especially of companies boasting fake authorizations from regulatory bodies. The FSMA quipped, “This is a very frequently used technique, often a case of identity theft. Always feel free to reach out to us for confirmation of any such claims.”
The Cost of Crypto Fraud
The surveillance of cryptocurrency scams has become even more crucial, especially since, according to the FPS Economy, Belgian investors reported losing €2.2 million (around $2.5 million) to scams in 2018 alone. But don’t let that figure fool you—experts suggest it’s only the tip of the iceberg, with only about 4% of fraud cases being reported. If we’re going by their estimates, that translates to a staggering annual loss of €130 million ($152 million) for unsuspecting Belgian investors. Ouch!
Worldwide Crypto Investor Support
Belgium isn’t alone in its struggle against crypto scams. Similar concerns have raised alarms across the globe. For example, in January, the State Security Board in Texas flagged cryptocurrencies as major threats to investors. Their advisory succinctly warned: “Promoters’ claims of ‘secure’ cryptocurrency-related investments and ‘guaranteed’ profits should be approached with caution.” They highlighted the notorious volatility of cryptocurrencies and the potential difficulty in liquidating investments tied to them.
Challenges for Regulatory Structures
While the excitement around digital currencies continues to burgeon, the quick proliferation of these assets poses challenges for regulatory bodies worldwide. The Chair of the Financial Stability Board, Randal Quarles, has expressed deep concerns about the rapid pace at which digital currencies are altering the global economy, while regulatory frameworks are often lagging behind. If only legislation moved as fast as Bitcoin during a bull run!
