Belgium updates its list of blacklisted cryptocurrency companies
As of today, Belgium’s Financial Services and Markets Authority (FSMA) has now blacklisted 113 cryptocurrency trading platforms operating in the country.
According to the FSMA, the companies are operating unlawfully if they provide “financial services and products without complying with Belgian financial legislation.” Additionally, FSMA also added companies that use “recovery room” fraud, the process of contacting victims of fraud and then promising them the recovery of their lost investments for a fee (however, the funds are never recovered and the fees paid for the ‘assistance’ are gone as well).
Despite their frequent warnings, the FSMA says they are still receiving complaints concerning companies they’ve previously blacklisted. FSMA says that their blacklist “cannot be considered as exhaustive” as the process of identifying fraudulent companies can take a substantial amount of time. FMSA warns investors of ‘cloned firms’ – companies that have been previously blacklisted, but change certain characteristics of the company in order to claim legitimacy.