Belgium’s Financial Regulator Adds 28 Scam Sites To Crypto Blacklist

Crime, News, Regulation | September 5, 2018 By:

Belgium’s Financial Services and Markets Authority ‎‎(FSMA) said that despite its earlier warnings, the agency continues to receive complaints from consumers who have invested in cryptocurrencies.

In its latest risk alert, the FSMA strengthened its warning and added 28 new crypto trading sites ‎to its crypto-related fraud blacklist. According to the FSMA, the latest additions are offering investments in Belgium without ‎complying with the country’s financial legislation.‎ The agency has also received numerous complaints from people who invested in these companies.

“Cryptocurrencies are the hype of the year,” the FSMA said. “Fraudsters are well aware of that, and try to attract customers online through fake cryptocurrencies and huge profits. The only thing they actually do, however, is take the customers’ money and disappear. It is as simple as that.”

The FSMA noted that the updated list is not comprehensive, and has been based solely on the findings of the agengy, in particular as a result of victims’ reports. The regulator appeals to the public to come forth with further information about any other crypto-related companies operating unlawfully in Belgium.

“For more information about this type of fraud, the FSMA invites potential investors to consult its warning of 22 February 2018, which includes a particularly detailed and telling testimony by a victim of such a platform,” the FSMA said. “Furthermore, the FSMA refers to the awareness campaign organized by the Belgian FPS Economy in collaboration with the FSMA and Wikifin”

Other regulators in Europe have also been skeptical about ‎cryptocurrencies. In March of this year, the Autorité des marchés financiers (AMF), the French financial supervisory authority, published a blacklist that includes 15 crypto-related websites. At the time, the AMF said that the companies that made it to the blacklist were either unaware of their obligations under the law or are ignoring these requirements.