Cryptocurrency Advertising Rules in Belgium: What You Need to Know

On March 21, the Belgian financial market regulator, the Financial Services and Markets Authority (FSMA), will implement a new set of cryptocurrency promotion rules within its jurisdiction, which will take effect on May 17, 2023. The new cryptocurrency advertising rules contain three key areas: information must be accurate and not misleading, advertising must contain mandatory risk information, and cryptocurrency companies need to notify FSMA before any large-scale activities. In addition, regulators define a mass event as any promotional activity that a company targets at least 25000 consumers.

Belgium to implement new cryptocurrency promotion rules on May 17th

As of May 17, 2023, new cryptocurrency promotion rules will be enforced in Belgium. The Financial Services and Markets Authority (FSMA) has set out three key areas that companies must adhere to when advertising cryptocurrency: information must be accurate and not misleading, advertising must contain mandatory risk information, and cryptocurrency companies must notify FSMA before any large-scale activities. This article will discuss the implications of these new cryptocurrency advertising rules and what they mean for cryptocurrency companies in Belgium.

The Three Key Areas of the New Cryptocurrency Advertising Rules

1. Accurate and Not Misleading Information

Under the new rules, cryptocurrency companies must ensure that all information presented in their advertising is accurate and not misleading. This means that any claims made about the benefits of investing in cryptocurrency must be backed up by evidence. Companies must also ensure that their advertising is not designed to mislead consumers or create false expectations.

2. Mandatory Risk Information

All cryptocurrency advertising must now contain mandatory risk information. This includes a warning that cryptocurrencies are not regulated and that investors may lose their entire investment. Companies must also include a warning that cryptocurrency investments are high risk and that consumers should seek independent financial advice before investing.

3. Notification of Large-Scale Activities

Cryptocurrency companies must notify the FSMA before any large-scale activities, such as advertising campaigns or promotional events. Under the new rules, a mass event is defined as any promotional activity that targets at least 25,000 consumers. This notification must be made at least two weeks prior to the activity taking place.

Implications of the New Cryptocurrency Advertising Rules

The new rules are designed to protect consumers from misleading information and to ensure that they are fully aware of the risks associated with investing in cryptocurrency. Companies that fail to comply with the new rules risk fines and legal action from the FSMA.
Cryptocurrency companies will now need to carefully review their advertising campaigns to ensure that they are accurate, transparent, and compliant with the FSMA’s new rules. Failure to do so could damage the reputation of the company and the wider cryptocurrency industry as a whole.

Conclusion

The new cryptocurrency advertising rules in Belgium, set to take effect on May 17, 2023, will require companies to provide accurate and not misleading information, include mandatory risk information in their advertising, and notify the FSMA before any large-scale activities. These rules are designed to protect consumers from fraudulent or misleading information and ensure that they are fully aware of the risks associated with investments in cryptocurrency.

FAQs

1. Will the new cryptocurrency advertising rules affect cryptocurrency trading in Belgium?
The new rules are designed to regulate how cryptocurrency companies promote their services in Belgium. They are not intended to restrict trading in cryptocurrency itself.
2. How can cryptocurrency companies ensure that their advertising is compliant with the new rules?
Cryptocurrency companies will need to ensure that their advertising is accurate, transparent, and includes mandatory risk information. They will also need to notify the FSMA before any large-scale activities.
3. What are the penalties for non-compliance with the new cryptocurrency advertising rules?
Companies that fail to comply with the new rules risk fines and legal action from the FSMA.