Belgium Requires All Crypto Ads To Mention Risk Disclaimer• March 20, 2023 11:51 am • Comments
The country of Belgium has revealed that they will be requiring all advertisements related to crypto must mention a disclaimer that says “Only guarantee in crypto is risk”.
This continues to add to the long-standing reputation that crypto is a risky and volatile asset that investors should be avoiding.
However, the recent banking crisis indicates that all financial assets are exposed to a degree of risk and that investors themselves should do research before investing in any asset or depositing their assets at a financial institution.
Even things such as traditional banks will also have risk which is something that many have not expected in the past month.
Still, it seems the country of Belgium wants to remind its customers that crypto is especially risky despite the recent events.
Belgium’s financial regulator is requiring virtual currency firms to add a punchy disclaimer to their advertisements: “The only guarantee in crypto is risk” https://t.co/odCZ3H7jWi
— Bloomberg Crypto (@crypto) March 20, 2023
According to the Belgian financial regulator, cryptocurrency ads in the country should warn investors of the accurate risks involved with cryptocurrencies.
The regulator should also be provided with the details of the ad campaign ten days prior by any mass media.
“Virtual currencies are all the rage at the moment, but they involve considerable risk.” “They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks,” FSMA said in a statement.
FSMA also conducted a study, which concluded that the primary reason for individuals trading in cryptocurrencies is to make quick money. The new rules by the FMCA are set to take effect on May 17.
This is not the first time where a country has decided to take specific action or place rules on how crypto should be advertise as many other countries within the EU have done similar things in the past.
Countries like Spain and the United Kingdom also have restrictions when it comes to publicity campaigns that are related to crypto.
Still, it is likely that such restrictions will not hamper the growth of the industry as most people and investors are able to do their own research these days to determine risk.
It is assumed that all financial assets carry a degree of risk anyways and it should be up to the individual investor to decide if that risk is acceptable or not.
To control or limit investor’s freedoms of choice is what would drive crypto companies to other regions that are more friendly towards the industry.
In Belgium they are requiring #Crypto Ads to say, “Only guarantee in Crypto is risk."
They might as well make #Bank ads say, "All your deposits may be gone tomorrow."
It's only fair right?#SVB pic.twitter.com/UbSmQw4G9U
— ₿ubba Crypto (@bubbaiscrypto) March 20, 2023
Powers published in Belgium’s Official Gazette on Friday mean any mass-media campaign to promote a digital currency would have to be submitted to the Financial Services and Markets Authority (FSMA) 10 days in advance, allowing the regulator to intervene if needed.
“Virtual currencies are all the rage at the moment, but they involve considerable risk,” the FSMA said in a statement. “They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks.”
The chance to make money quickly is cited as the leading reason why people trade in virtual currencies, and investors have been undeterred by the crypto winter or the collapse of crypto exchange FTX, according to an FSMA study.
The new rules, which will take effect on May 17, require ads to state that “the only guarantee in crypto is risk.” Belgium joins European countries such as Spain and the U.K. in imposing restrictions on publicity campaigns, which often mirror those already in place for traditional finance.
JUST IN: 🇧🇪 Belgium to require all #cryptocurrency ads to state: "the only guarantee in crypto is risk."
— Watcher.Guru (@WatcherGuru) March 20, 2023
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