The financial regulatory body of Belgium has been tasked by the government to regulate advertisements for cryptocurrencies. New rules, set to enter into force in May, oblige advertisers to clearly warn investors of the risks associated with the digital assets.
Belgium’s Financial Services and Markets Authority (FSMA) has been granted powers to strictly regulate crypto-themed advertising. The new rules, which will be applied in less than two months, are meant to ensure that the risks linked to virtual currencies are “sufficiently prominent” in such advertisements, the regulator said in an announcement on Monday.
A respective regulation issued by the FSMA, which will supervise compliance, has been published in the Belgian Official Gazette on March 17 and will enter into force on May 17, 2023. It prescribes that crypto-related ads must be accurate and not misleading while pointing out the risks.
It also requires that the FSMA is notified in advance about mass media campaigns, those disseminating advertisements to at least 25,000 consumers. The prior notification would allow the regulatory body to intervene before the start of such campaigns if it deems it necessary to do so.
“Advertisements may not emphasize the potential advantages without also providing an accurate indication of the risks, limitations or conditions. Nor may advertisements contain any statements about the future value or return, and must be written in comprehensible language,” the authority elaborated.
One of the rules supplementing these conditions is that cryptocurrency ads must contain a “short and punchy warning,” stating: “Virtual currencies, real risks. The only guarantee in crypto is risk.” Furthermore, they will have to feature, reference, or link to a broader warning presenting the various risks in detail.
The FSMA also intends to do more in regards to financial education about digital assets. It’s currently producing a series of videos devoted to virtual currencies targeting young people. These are part of an educational package that also includes an information sheet for teachers and a quiz for pupils.
The financial authority’s regulatory move comes after last week Belgium’s former Finance Minister Johan Van Overtveldt called on governments to ban cryptocurrencies amid a banking crisis involving two crypto-friendly banks. It also follows the publication of an article in which the head of the Dutch financial regulator vowed strict treatment of crypto businesses under EU’s Markets in Crypto Assets (MiCA) law.
What are your thoughts on the upcoming crypto advertising rules in Belgium? Tell us in the comments section below.
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Werner Lerooy / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
The financial regulatory body of Belgium has been tasked by the government to regulate advertisements for cryptocurrencies. New rules, set to enter into force in May, oblige advertisers to clearly warn investors of the risks associated with the digital assets.
Belgium’s Financial Services and Markets Authority (FSMA) has been granted powers to strictly regulate crypto-themed advertising. The new rules, which will be applied in less than two months, are meant to ensure that the risks linked to virtual currencies are “sufficiently prominent” in such advertisements, the regulator said in an announcement on Monday.
A respective regulation issued by the FSMA, which will supervise compliance, has been published in the Belgian Official Gazette on March 17 and will enter into force on May 17, 2023. It prescribes that crypto-related ads must be accurate and not misleading while pointing out the risks.
It also requires that the FSMA is notified in advance about mass media campaigns, those disseminating advertisements to at least 25,000 consumers. The prior notification would allow the regulatory body to intervene before the start of such campaigns if it deems it necessary to do so.
“Advertisements may not emphasize the potential advantages without also providing an accurate indication of the risks, limitations or conditions. Nor may advertisements contain any statements about the future value or return, and must be written in comprehensible language,” the authority elaborated.
One of the rules supplementing these conditions is that cryptocurrency ads must contain a “short and punchy warning,” stating: “Virtual currencies, real risks. The only guarantee in crypto is risk.” Furthermore, they will have to feature, reference, or link to a broader warning presenting the various risks in detail.
The FSMA also intends to do more in regards to financial education about digital assets. It’s currently producing a series of videos devoted to virtual currencies targeting young people. These are part of an educational package that also includes an information sheet for teachers and a quiz for pupils.
The financial authority’s regulatory move comes after last week Belgium’s former Finance Minister Johan Van Overtveldt called on governments to ban cryptocurrencies amid a banking crisis involving two crypto-friendly banks. It also follows the publication of an article in which the head of the Dutch financial regulator vowed strict treatment of crypto businesses under EU’s Markets in Crypto Assets (MiCA) law.
What are your thoughts on the upcoming crypto advertising rules in Belgium? Tell us in the comments section below.
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Werner Lerooy / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
Serving as a committee member of Alchemy Pay’s management and advisory board, and as Global Strategic Adviser to support Alchemy Pay’s expansion and growth in global markets, contributing actively to strategy, compliance and government relations.
Alchemy Pay, Singapore based pioneer of the world’s first payment gateway solution to bridge the gap between fiat and crypto economies, has announced the appointment of legendary campaign manager and former White House Senior Advisor, David Plouffe, as Global Strategic Advisor.
Plouffe is credited with the strategy and grass-roots public engagement savvy that won Obama’s 2008 presidential campaign, subsequently becoming Senior Advisor to the President in the Obama Administration. Plouffe has noted Alchemy Pay’s backbone mission in the cryptocurrency industry, and its steady course and leadership in the industry’s evolution.
“Cryptocurrency and decentralized ledgers are the newest permanent features of the global economy,” said Plouffe. “Alchemy Pay has chosen to focus on bridging public sector and private sector agendas as a strategy in its mission to provide fiat-crypto transaction services. Alchemy Pay understands that the key to crypto sustainability and growth is broadening utility cases by focusing on payment channels, proper compliance and user experience.”
After his work for Obama, Plouffe became the Senior Vice President of Policy and Strategy for Uber in 2019, and in 2022 Plouffe joined the Binance Global Advisory Board.
About Alchemy Pay
Founded in Singapore in 2018, Alchemy Pay is a payment gateway that seamlessly connects crypto and global fiat currencies for businesses, developers, and users. The Alchemy Pay Ramp Solution is integrated, via plugin or API, with platforms and dApps, providing an easy onramp from fiat currency to crypto. Alchemy Pay supports payments from 173 countries, through Visa, Mastercard, Google Pay, Apple Pay, popular regional mobile wallets, and domestic transfers with a focus on emerging markets. Its offramping capability remits to users in 50+ local fiat currencies. ACH is the Alchemy Pay network token on Ethereum and BNB Chain.
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Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Source From : News