Belgium’s Financial Services and Markets Authority (FSMA) has issued a warning against the unauthorized activities of multiple binary options brokers, that are unlawfully targeting Belgian investors.
Belgium was the first European country to outlaw the binary options industry back in 2016, citing a rising number of complaints from its citizens. Along with leveraged forex and CFDs, Brussels completely bans binaries brokers from operating in the country.
Belgium’s financial regulator is also warning that these products are marketed aggressively, extremely risky, and often have ‘no connection to the real economy.’
The FSMA is not banning all forex and CFD trading but rather the kind with leverage, such as contracts for difference (CFDs) and spot forex contracts.
The latest additions include:
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- Go Capital FX (Go Capital 123 – Lancelot Equity Ltd.) (www.gocapitalfx.com – www.gocapital123.com)
- Vipwayzone (www.vipwayzone.com)
FSMA operates as a watchdog for financial trading, securities, and markets in Belgium, overseeing a variety of assets and compliance issues for traders and consumers. Today’s warning is the latest initiative in its efforts to clamp down on companies engaging in fraudulent activities.
FSMA turns eyes to cryptos
The regulator’s full list also includes companies and associations that approach victims of investment fraud claiming that, for a fee, they can help them recover the sums invested and/or the losses incurred on unlawfully operating trading platforms. This type of activity is typical of the fraud mechanism known as a recovery room.
Recently, the watchdog turned eyes to crypto firm and has therefore updated its warning list with multiple cryptocurrency platforms that are offering investments in the country without complying with Belgian financial legislation.
The investor alert represents the FSMA’s latest effort to police the rampant internet-based cryptocurrency schemes which operate in its zone.
The FSMA said it had received numerous complaints from people who hear nothing from a company after investing their money.
To get the protections offered by securities laws when trading digital assets, investors should use a platform or entity registered with the FSMA, the regulator said.