New research reveals that many Belgians trade crypto in the hope of making money quickly, and few appear to be put off by the collapse of FTX.
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Belgium has announced that it's drastically tightening the rules surrounding cryptocurrency adverts.
From May 17, businesses will be ordered to ensure their ads are not misleading — and they'll be obliged to include information that outlines the risks associated with these investments.
Crypto firms will also need to give advance notice to the Financial Services and Markets Authority before they embark on any campaign.
In a statement on its website, the FSMA explained:
"Virtual currencies are all the rage at the moment, but they involve considerable risk. There is no legal framework yet governing these products, and they have no underlying assets in the 'real' world. They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks."
It's hoped that these new measures will ensure ads are more balanced — and prevent perceived advantages from getting greater prominence than potential dangers.
As in other countries, statements relating to the potential future value of cryptocurrencies like Bitcoin will be prohibited.
"A short and punchy warning" will also need to be added to every single crypto advert in Belgium, which says:
"Virtual currencies, real risks. The only guarantee in crypto is risk."
The FSMA is also embarking on a new educational campaign, and is releasing a video that explains how cryptocurrencies work from this will be accompanied by an information sheet for teachers, a quiz for students, and even a game.
Jean-Paul Servais, the agency's chairman, says consumers have been motivated by a desire to earn money quickly by trading in cryptocurrencies and altcoins.
Most Belgians who have dabbled in cryptoassets are aged 16 to 29 — and out of people in this age group who make investments, 34% have bought a virtual currency.
Out of all those who have gained exposure to crypto, 43% said they wanted to make money quickly — and 36% said they did so for pleasure or excitement.
Meanwhile, among those who have refused to buy digital assets, 58% argued it was too high risk — and 46% said they didn't believe in crypto, or didn't see the point of it.
And another interesting statistic is this: the crypto winter and the dramatic collapse of FTX doesn't appear to have had too much of an impact in perceptions of digital assets. Only 7% said they will no longer trade virtual currencies as a direct result of the bear market and SBF's empire going bankrupt. Over 60% argued that events of the past few months amount to a temporary correction — and said they remain determined to continue trading.
