Virtual currencies: the FSMA steps up its action to protect consumers

The FSMA issued a press release, informing it has taken steps to protect consumers by implementing new rules governing advertisements for virtual currencies.
Indeed, the FSMA requested and obtained from the government a new legal competence empowering it to regulate advertising relating to virtual currencies by means of a royal decree. This Royal decree of 5 January 2023 approving the regulation of the Financial Services and Markets Authority subjecting the marketing of virtual currencies to consumers to restrictive conditions was published in the Belgian Official Gazette on 17 March 2023 and will enter into force on 17 May 2023, hence 2 months after its publication.
These rules aim to ensure that the risks associated with virtual currencies are sufficiently prominent in such advertisements. They will require advertisements to be accurate and not misleading, contain mandatory information that highlights the risks, and be written in comprehensible language. Advertisements must also include a warning that reads:
„Virtual currencies, real risks. The only guarantee in crypto is risk.“
All advertisements must contain a broader warning or a link to such a warning that summarizes the various risks in greater detail.
In addition to these new rules, the FSMA is also investing in financial education about virtual currencies, including launching an educational video and game module for young people to help raise awareness of the risks associated with virtual currencies.
To better understand investor behavior in Belgium, the FSMA conducted a study of 1000 investors in November 2022. The survey found that virtual currency trading is most popular among young people, with 34% of investors between the ages of 16 and 29 trading in virtual currencies. Making money quickly and the pleasure and excitement of trading in innovative products were cited as the main reasons for investing in virtual currencies.