Belgian Financial Watchdog Warns Against Crypto Fraud

Belgian Financial Watchdog Warns Against Crypto Fraud

News of one fraud after different is confusing the cryptocurrency markets. Belgium’s Financial Services and Markets Authority (FSMA) has regularly issued warnings upon cryptocurrency fraud, asking citizens to be alert. However, the number of accusations that the agency has received against crypto criminals is on the rise. In the wake of this situation, the FSMA has published a new alert upon these entities. It also added 28 new websites to its crypto fraud blacklist.

Scammers Use Crypto Hype to Dupe People

Cryptocurrencies reached unprecedented hype after the price of Bitcoin reached $20,000. The run-up to this all-time high in the last fourth of 2017 made the mainstream interested in crypto investments. Several local investors flocked into the crypto markets, only to bleed later. The price of Bitcoin has dropped to $7,000. However, this hasn’t stopped interested investors from tinkering into the crypto world.

The FSMA states that fraudsters are using the hype throughout digital assets to float fake cryptocurrencies and bring customers online. They lure people declaring huge profits, as was seen in the case of Bitcoin last year. But according to the FSMA:

“The only thing they do, though, is getting the customers’ money and disappear. It is as easy as that.”

Is the Blacklist Complete?

The FSMA implies that the list is not exhaustive and is merely based on reports by games of crypto fraud. Thus, it asks people to come up with information about crypto things that are illegally operating in the nation. The company urges concerned individuals to refer to its February 2018 warning, which provides exciting details of a victim’s experience with crypto clips.

In Belgium, officials are strictly against crypto trading. In February this year, tax police opened several inquiries against Belgian citizens who traded digital assets on foreign exchanges. As it is not a controlled form of trading in the country, crypto traders are required to pay a 33% tax on their profits.

The EU is getting progress in producing stable cryptocurrency rules that govern the industry further. However, for now, users can only depend on due care to protect themselves from fraud.

#Belgian #Crypto #Scam #Crypto fraud

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