Belgian regulator sets out rules for cryptocurrency advertising

Advertising of digital assets in Belgium must be accurate and not misleading, and advertisements must include information about risks. This was stated by the Financial Services and Markets Authority (FSMA).

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According to the statement, the agency has received authority to regulate cryptocurrency advertising and has published the corresponding rules. They will take effect on 17 May 2023.

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The regulation requires notifying FSMA of marketing campaigns at least 10 days in advance and sets the conditions that advertising must meet. In particular, advertisements must be written in plain language and include a disclaimer.

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\”Some consumers want to make money quickly by trading virtual currencies. This goes hand in hand with large risks. […] With the new regulation, FSMA will be able to verify whether advertising is accurate and not misleading,\” the press release says.

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The Belgian regulator introduced mandatory registration of cryptocurrency exchanges and custodial wallet operators in May 2022.

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In July FSMA proposed to treat digital assets whose issuance is limited or which pursue an investment objective as securities. Subsequently, the regulator doubted that the corresponding rules apply to Bitcoin and Ethereum.

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Earlier in February 2023, the UK’s Financial Conduct Authority threatened prison terms for unauthorized crypto advertising.