As cryptocurrency frauds and scams have become frequent and common in the crypto space, the authorities of Belgium have taken an initiative to protect the locals. In the near recent, the Financial Services and Markets Authority (FSMA) of Belgium updated the list of crypto projects that are scamming people.
After getting feedback from various consumers who had previously fallen for fraudulent investment offers, FSMA enlisted a total of about 131 websites out of which 9 websites were added just a few days ago. As per the Belgian regulator, the websites and projects scamming people were added to list only after consumers reported complaints against them.
Apart from warning people, FSMA also elaborated on how the fraudulent crypto projects operated and convinced consumers to opt for safe and secure investments. Explaining the complete cycle, FSMA’s website reads:
The principle remains the same: they offer you an investment they claim is secure, easy and very lucrative. They try to inspire confidence by assuring you that you don’t need to be an expert in cryptocurrencies in order to invest in them. They claim to have specialists who will manage your investments for you. You are told that your funds can be withdrawn at any time or that they are guaranteed. In the end, the result is always the same: the victims find themselves unable to recover their money!
As many of the 131 websites listed by FSMA are operating outside the jurisdiction of FSMA, most of them can’t be charged or tried in the court. Therefore, the step taken by the Belgian regulator to make people aware of the companies operating unlawfully and unethically is indeed the best FSMA could do now to restraint Belgian locals from doing business with dodgy cryptocurrencies-related websites.
Furthermore, to facilitate consumers, FSMA has asked them to verify any information by contacting FSMA before investing with any company. In this regard, FMSA stated:
This is a very frequently used technique. However, these are often cases of identity theft. Feel free to ask the FSMA to confirm the information you have received.
As cryptocurrencies are an extremely volatile asset class, investors all over the world are always looking for opportunities to get massive returning gains. While they aim and intend for the best, investors are very prone to unrealistic schemes promising great returns but, in reality, just scamming the investors.