The Financial Services and Markets Authority of Belgium (FSMA), added multiple crypto-related websites likely fraudulent and in the latest cryptocurrency news, we will see why.
The FSMA watchdog updated its blacklist where according to an official statement, the blacklist reached 120 websites. The scam blacklist was initially updated in December 2018 when the FSMA added seven trading platforms that were fraudulent.
According to the official statement, the financial authority of Belgium pointed out that new complaints keep on coming from consumers that invested in cryptocurrencies on the added trading platforms. Consumers claim that crypto fraud is gaining more power in Belgium over the past two years. Many complaints have been sent to the watchdog about being scammed or defrauded by a crypto-investing company promising high returns.
As previously reported, the financial services and markets authority made up a list of crypto-related websites that are potentially a scam based on the findings of the watchdog. They based the decisions from the multiple results of user reports. The regulator made very clear that not all companies are added to the blacklist since there is a lack of evidence. There could be many more companies still operating in Belgium illegally in the crypto industry. The FSMA urged users to be careful and to do as much digging for the companies as possible.
In 2017, the Belgian financial authority FPS Economy started a website in order to raise awareness of all the risks that emerge from investing in cryptocurrencies. According to the FPS website, many of the investors in Belgium reported losses of nearly $2.5 million by crypto scams. This sum is evaluated to only four percent of all of the crypto fraud cases. However, the total losses amount up to $152 million.
On March 3rd, the European Union launched the International Association of Trusted Blockchain Applications (INATBA) in Belgium. This alliance was signed by approximately 100 members including IBM, Deutsche Telekom, IOTA, and Ripple.
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