Belgium s Financial Services and Markets Authority FSMA has issued a mandate on Monday about cryptocurrencies firms in the country that trading in virtual currency is risky and the only guarantee in cryptanalym is risk. The FSMA, which was recently given powers to regulate Belgium's criptocurrency industry s marketing, wants firms not promise any guaranteed returns and explicitly state all risks and conditions.
Virtual currencies are all the rage at the moment, but they involve a lot of risk. There is no legal framework yet governing these products, and they have no underlying assets in the real world. The FSMA stated that they are susceptible to fraud and IT-related risks and are subject to wild price fluctuations.
Advertisings must contain a short and punchy warning: ''Virtual currencies, real risks. The only guarantee in criptocurrency is risk. All advertisements must contain a broader warning or a link to a warning. It stated that the warning should sum up the risks in greater detail.
According to the FSMA, people invest in cryptocurrencies to get rich overnight.
The rules are going to take effect on May 17.
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