Another website related to cryptocurrency allegedly associated with shady activities has been added to the blacklist of Belgium’s Financial Services and Markets Authority (FSMA).
As announced on February 21, the FSMA updated the list after some users based in Belgium complained about shady offers of investment in digital currencies. The total number of websites on the list is now 141 after the recent update.
Further warnings from the FSMA noted that the list is compiled according to user reports as well as the agency’s findings. That is, businesses related to cryptocurrency possibly operating illegally in Belgium are not included.
The agency had previously issued similar warnings to crypto investors, telling them to be wary of firms claiming to be authorized by supervisory authorities. The FSMA told the investors that it is a strategy often used but these are frequent cases of identity theft. Investors have the opportunity to ask the agency questions regarding the information they receive.
In June 2019, Belgian FPS Economy launched a website to make people further aware of the risks accompanying cryptocurrency investments. The website was launched after Belgian investors reportedly lost $2.5 million in crypto scams in 2018.
Interestingly, the FPS said the reported cases were only 4 percent of all cryptocurrency fraud cases. Based on estimates, Belgian investors lose approximately $152 million to cryptocurrency scams yearly.
Authorities worldwide offer informational support for crypto investors towards insurance from likely losses. In the U.S., Texas’s State Security Board added cryptos to their list of leading threats to investors.
On the other hand, Financial Stability Board Chair Randal Quarles expressed his worries over the quickness of digital currencies’ influence on the world’s economy while regulatory actions are yet to be stabilized.