Belgium’s FSMA demands crypto regulations fearing the increase of fraudulent activities
- FSMA demands regulations in the trade of cryptocurrency due to the increase of fraudulent platforms
- The available digital currencies are currently valued at more than $320 billion
- The non-traceability to cryptocurrency makes them perfect for cyber crimes
According to Belgium’s Financial Services and Markets Authority (FSMA), the government should bring regulations to digital currencies. In a senate hearing held on 10th February, the chairman of FSMA, Jean-Paul Servais, advocated that the lawmakers need to find legal frameworks that would regulate the sale, purchase, and the use of the digital currencies and all other virtual products.
As more and more people embrace the new cryptocurrencies, it is both a good and a dangerous thing. It has opened up the world to new forms of money that have allowed anonymous trading, thus protecting the information of individuals. However, anonymity also makes it easier for thugs, peddlers, and kidnappers to receive payment in a way that they cannot be traced.
According to him, it is high time that the government gets into the cryptocurrency business, which is growing at a fast pace. Today, thousands of digital currencies combined sum up to a total of over $320 billion. Therefore, any fraudulent activities online will greatly impact numerous investors in the industry. The size of the continuously growing industry, however, could create a lucrative platform for an increase of crimes if regulations are not put in place. FMSA also cited that countries like China, Argentina, Thailand, Russia, Bolivia, Algeria, and Ecuador had chosen to block or regulate the cryptocurrency trade in their countries. The actions from these countries backed his stance that something needs to be done about the current overflow of cryptocurrencies and their abilities to all people.
The chairman’s resolution also mentions how numerous bitcoin ATMs and vending machines are placed in various locations around the world, a couple of them in Belgium. He also cited the warnings of economists on the increase of the crypto economy and its consequences to the world — the royal decree in 2014 that bars the retail investors from getting virtual currency-based products.
A legal framework implemented without delay will necessitate the transfer of money and other financial products and ensure the adequate protection of customers. It will also prevent the use of these virtual platforms as a mode of fraud and other criminal activities. It will help guarantee safe, legal business transactions online.