Belgium’s Financial Services and Markets Authority (FSMA) recently released a report highlighting the prevalence of crypto scams and fraudulent trading platforms in the country. According to the report, these illicit activities accounted for 50% of all fraud reports received by the agency in the first half of 2024. The FSMA is ramping up its efforts to address this issue and has issued nine warnings during this period.
The report also revealed that the FSMA identified 187 fraudulent entities and 239 associated websites. In addition, two thematic warnings were issued regarding fake investment games and cases of identity theft involving the FSMA’s name. Online trading platforms and crypto scams continue to be a major concern in Belgium, with 1,332 consumer notifications of illicit activities received in the first six months of 2024, representing a 44% increase from the previous year.
The landscape of domestic crypto exchanges in Belgium has undergone significant changes recently. Bit4You, the country’s first and only lending platform, ceased its activities in 2023 following the insolvency of one of its main partners, CoinLoan, as declared by an Estonian court. Additionally, the FSMA ordered Binance to stop offering crypto services in Belgium, citing that the exchange was operating from countries outside the European Economic Area.
The FSMA’s efforts to combat crypto scams and fraudulent trading platforms are crucial in protecting consumers and maintaining the integrity of the financial market in Belgium. It is important for individuals to exercise caution when engaging in crypto-related activities and to report any suspicious entities or websites to the appropriate authorities.
As the popularity of cryptocurrencies continues to rise, so does the risk of falling victim to scams and fraud. It is essential for investors and traders to conduct thorough research before participating in any crypto-related transactions and to be wary of offers that seem too good to be true. By staying informed and vigilant, individuals can protect themselves from becoming victims of fraudulent activities in the crypto space.