Although the cryptocurrency market has grown rapidly in recent years, there has also been an increase in fraudulent activities along with this growth. This situation not only damages the confidence of investors but also threatens the future of cryptocurrencies.

One of the countries that has taken precautions against this problem is Belgium. The Belgian Financial Services and Markets Authority (FSMA) has launched a determined fight against cryptocurrency fraud and adopted a multi-pronged approach to protect investors.

FSMA’s July 4 report sheds light on the dark side of the cryptocurrency market in Belgium. According to the report, 50% of the total fraud complaints submitted to the FSMA in the first half of 2024 stem from cryptocurrency fraud and fake trading platforms.

To solve this problem, FSMA focuses on protecting investors by detecting fraudulent platforms. First, it actively works to track down fraudsters and protect investors. The report reveals that 187 fake companies and 239 fake websites were detected in the first six months.

These startups often operate fraudulently, luring investors with promises of high returns. FSMA is trying to neutralize these fake platforms by issuing warnings and informing the public.

FSMA’s challenge is not limited to platforms. The institution also examines the tactics used by fraudsters and tries to protect investors against these tactics. An intense fight is being carried out especially against fake investment games and identity theft cases. The use of FSMA’s name in these fraudulent methods to encourage unsuspecting investors to gain confidence further increases the sensitivity of the authorities.

Fake investment schemes are often carried out through fake platforms that involve complex financial instruments and promise high returns. In cases of identity theft, fraudsters try to deceive investors into giving them their personal information by imitating the FSMA’s logo and identity. In such cases, investors may lose significant amounts of money and their credentials may become malicious.

FSMA’s regulatory efforts are also linked to important developments in the cryptocurrency market. Bit4You, Belgium’s first and only cryptocurrency lending platform, suspended its activities in 2023, revealing the fragility of the cryptocurrency ecosystem. Behind this situation lies the bankruptcy of CoinLoan, one of Bit4You’s main partners. During the same period, international cryptocurrency exchange giant Binance also had to stop its operations in Belgium.

FSMA made this decision on the grounds that Binance offers services from countries that are not members of the European Economic Area. This incident reveals that Belgium is struggling not only with cryptocurrency fraud, but also with crypto exchanges that pose security risks due to lack of regulation.

Belgium’s fight against cryptocurrency fraud will determine the future of the country’s cryptocurrency market. FSMA’s determined stance can be considered as part of Belgium’s effort to ensure an environment of trust in the cryptocurrency market and to create a regulatory system based on solid foundations for the future.

FSMA is not alone in this fight. Work is being carried out in the international arena to regulate the cryptocurrency market and protect investors. However, for these efforts to be effective, global cooperation is essential.