Belgium is introducing a new regulation which may have a dampening effect on the cryptocurrency market. The Financial Services and Markets Authority (FSMA) have announced stricter guidelines on how companies can advertise crypto assets, requiring for instance a disclaimer at the bottom which states the only guarantee in investing in digital assets is risk. These regulations come as banks across Europe are adding crypto services to their financial offerings such as the German Neobank N26 which recently expanded its crypto trading to four new countries.

In France, lawmakers have proposed an amendment to Bill 790 where promoting crypto assets will be considered a criminal offense while across the European Union crypto related activities must meet stricter requirements to cover risks associated with digital assets.

A few years ago many countries took measures to foster a crypto-friendly environment with the goal of welcoming innovators. However, this is now changing as the latest regulations conducted by Belgium are seen as punitive by many. The full disclaimer used by companies requires them to state “Virtual currencies, real risks. The only guarantee in crypto is risk.” which could seemingly be seen as an attempt to scare people away from investing in cryptocurrencies.

Cryptocurrency markets experience highs and lows, just like any other investment asset, and a change in attitude is necessary if crypto is going to remain an option for businesses and individuals. Restrictive regulations that limit innovation and disconnect entrepreneurs from potential customers should not be seen as a form of protecting citizens. While there are risks associated with investing in digital assets just like with any other investment, to give off warning messages intentionally can be seen as counterproductive.



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