Belgium’s financial watchdog, the Financial Services and Markets Authority (FSMA), said today that it continues to receive complaints from consumers who have invested in cryptocurrencies. The regulator has recently exposed the unauthorized activities of a Belgian crypto trading company called Abesix Belgique.
Interestingly, a report published by Belgian business newspaper De Tijd claimed last month that Abesix was co-founded by Bernard Arnault, the owner of Louis Vuitton and the world’s third-richest man. It also mentioned that Emmanuel Wouters, a young entrepreneur from Brussels, was also connected to the development of Abesix.
However, the deed of incorporation of Abesix proves to be false, as it turns out that Arnault is neither a founder nor a partner of Abesix. Subsequently, after the publication of the article, De Tijd posted an update that the 70-year-old businessman has formally denied the allegations. Moreover, Wouters is in no way involved in the establishment and the activities of Abesix.
Abesix is reportedly trading in six major cryptocurrencies – Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), and XRP. Apart from trading crypto, the company promotes its offering as an online financial planner.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
FSMA turns eyes to cryptos
The investor alert represents the FSMA’s latest effort to police the rampant internet-based cryptocurrency schemes, which operate into a zone that the watchdog regulates.
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.
“As ABESIX is allegedly also offering virtual currencies, the FSMA emphasizes that, at present, there is no financial supervision or oversight on virtual money. For that reason, and because such products are risky, both the FSMA and the NBB advise – and have been doing so since 2014 – taking extra care with them (https://www.fsma.be/en/news/be-careful-virtual-money-such-bitcoin),” the regulator said.
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.