Belgium Regulator Blacklists 21 Crypto Firms Suspected of Fraud
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The Financial Services and Markets Authority (FSMA) has added 21 new websites of suspected cryptocurrency scams to its blacklist.
Belgium’s financial regulator published the list on its official website, bringing their tally of suspected crypto scams in the country to 99. The agency found that despite their prior warnings concerning the risks associated with crypto investments, Belgium is witnessing a growth in online fraud cases. Among the blacklisted companies, many are offering financial services without complying with the Belgian financial legislation. Moreover, the listed firms are also involved in attracting victims to their allegedly fake investment schemes.
The FSMA blacklist also names websites that reach out to the victims of earlier crypto frauds. These persons running these websites pose themselves as financial advisors, lawyers, and accountants. They promise victims that they would arrange compensation or to recover their losses in exchange for a fee. The financial contribution by the victim, however, does not result into anything substantial. The FSMA refer these scam websites as ‘Recovery Rooms.