On the back of rising complaints from the consumers, the Financial Services and Markets Authority (FSMA) of Belgium has issued a fresh warning against new cryptocurrency trading platforms those are a scam. The regulator says that the fraudsters behind these platforms are swindling consumers:
"Cryptocurrencies are the hype of the year. 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 has also updated its list of cryptocurrency trading platforms regarding which it has received questions/complaints from consumers and vis-à-vis which it has identified signs of fraud. It further provides a disclaimer that the list cannot be considered as exhaustive, and investors are always advised to check if a company that is offering them a financial service holds the requisite authorization or registration.
Earlier in February of this year also, the FSMA had issued the warning on crypto scams, stating that many platforms appeared on the internet and they all used the same trick: they claim to offer the best (or one of the best) trading platform(s), enabling both beginners and professionals to trade in cryptocurrencies in a matter of seconds and with full confidence. It further added that some of these platforms also offered other financial products with cryptocurrencies as their underlying: savings accounts with supposedly guaranteed returns, servicing rights or derivative products such as CFDs.
The common complaints that FSMA received - consumers never recovered the funds they invested or they simply heard nothing further from the company with which they invested their money.
The FSMA also offers some tips to stay vigilant. First, it advises customers to always verify the identity of the company (company identity, home country, etc.). Second, always ask your interlocutor for clear and comprehensible information, and take a critical attitude to the information they provide. Last but not the least, be wary of (promises of) completely disproportionate gains - where a return seems too good to be true, it usually is. The FSMA, alongside the National Bank of Belgium (NBB), supervises the Belgian financial sector.
Different countries in Europe have a different stance when it comes to the legality of Bitcoin. Belgium maintains a neutral stance. However, the country has declared that Bitcoins will be exempted from Value Added Tax (VAT).