Belgium’s FSMA says crypto scams still account for 50% of fraud activity

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As a researcher with a background in financial regulation and a personal experience of investigating fraudulent activities, I find Belgium’s recent report on crypto scams and fraudulent trading platforms alarming. The fact that these illicit activities account for half of all fraud reports received by the Financial Services and Markets Authority (FSMA) in the first half of 2024 is a clear indication that online trading platforms and crypto scams remain a significant concern.

In a recently released report, the Belgian financial regulatory body warns that cryptocurrency scams and deceitful trading platforms comprised approximately half of all reported fraud cases during the initial six months of the year 2024.

As a financial analyst, I can tell you that the Belgian Financial Services and Markets Authority (FSMA) is ramping up its actions against cryptocurrency-related frauds. These deceitful practices make up a substantial share of our ongoing investigations into illegal activities.

As an analyst, I’d rephrase that as follows: In the first half of 2024, crypto scams and fraudulent trading platforms were responsible for nearly half (50%) of all reported fraud cases to the Financial Services and Markets Authority (FSMA). The agency responded by issuing nine warnings, exposing a total of 187 fraudulent entities and 239 associated websites. Furthermore, two thematic warnings were released, targeting fake investment games and instances of identity theft that misused the FSMA’s name.

Belgium’s FSMA says crypto scams still account for 50% of fraud activity

As a researcher examining the trends in online trading and cryptocurrency markets, I can’t help but acknowledge the growing concern surrounding fraudulent activities on these platforms. The Financial Services and Markets Authority (FSMA) reported a significant increase in consumer alerts for illicit activities during the first half of 2024, with a total of 1,332 notifications – a striking 44% rise from the 925 alerts in the same period of the previous year.

In Belgium, the cryptocurrency exchange scene has undergone notable transformations. Bit4You, the pioneering local lending platform, halted operations in 2023 following the insolvency declaration of one of its key partners, CoinLoan, by an Estonian court during the same year. Moreover, the Financial Services and Markets Authority (FSMA) instructed Binance to stop providing any crypto services within the country in 2023, explaining that the exchange was operating from nations outside the European Economic Area.

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2024-07-04 14:15