Belgium Regulator Flags 131 Unregulated Crypto Websites

Belgium’s financial watchdog, the Financial Services and Markets Authority ‎‎(FSMA), has issued a warning against the unauthorized activities of multiple ‎cryptocurrency platforms that are offering investments in the country without ‎complying with Belgian financial legislation.‎

The investor alert represents the FSMA‎’s latest effort to police the rampant internet-based ‎cryptocurrency schemes which operate into a zone that the ‎watchdog regulates.

Other European regulators have also been skeptical about ‎Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and see them as a threat to financial stability.‎

Based on its investigation, the FSMA said the scheme often includes these firms offering ‎investment contracts and requiring their interested investors to deposit their money to a bank account or ‎through other methods, while promising little or no financial risks.

The FSMA said it received numerous complaints about cryptocurrency platforms as many of their clients didn’t recover the funds they invested, or simply have heard nothing further from the company after investing their money.‎

To get the protections offered by the securities laws when trading digital assets, investors should ‎use a platform or entity registered with the FSMA, the regulator said.

FSMA operates as a watchdog for financial trading, securities, and markets ‎in Belgium, overseeing a variety of assets and Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term issues for traders ‎and consumers. Today’s warning is the latest initiative in its efforts to clamp ‎down on companies engaging in fraudulent activities.‎

The list of recently identified websites includes:

• bitcoinmarketscap.com
• bitcointraderspro.com
• coinsmex.com
• crypto-sfs.com
• etc-markets.co
• fisherih.com
• ltc-markets.com
• stsroyal.com
• tdscapitalgroup.com

The FSMA’s list now includes a total of 131 websites. The regulator has recently exposed the unauthorized activities of a Belgian crypto trading company called Abesix Belgique. A report published by Belgian business newspaper De Tijd claimed last month that Abesix was co-founded by Bernard Arnault, the owner of Louis Vuitton and the world’s third-richest man. It also mentioned that Emmanuel Wouters, a young entrepreneur from Brussels, was also connected to the development of Abesix.

However, the deed of incorporation of Abesix proves to be false, as it turns out that Arnault is neither a founder nor a partner of Abesix.