Belgium's government is backing a website that seeks to warn cryptocurrency investors about the signs of potential fraud.
The new site, entitled "Too Good to Be True," is run in part by the Belgian Federal Public Service Economy and the Financial Services and Markets Authority. Saying crypto assets "are the hype of the year," the site warns that because they are extremely easy to develop, these tokens may be used for illegitimate purposes, including "scams, drug trafficking, terrorism or any other criminal activity."
As such, the site advises that anyone considering funding a token sale should research the people behind a project, avoid sharing any personal information, ask for clear information about the project and be careful if a project promises large returns.
Crypto scammers "often seem reliable," according to the site, but they can still dupe would-be investors.
"Collision with crypto coins can take different forms. Scammers try to trap consumers in different ways. Be extra cautious when paying online with cryptocurrencies, when investing in sports betting with crypto coins and with platforms for investments in crypto coins."
Further, the site includes a website checker on the home page. The site claims to be able to determine if a website is fraudulent, though it notes that the developers "are not responsible for any errors in the system."
The checker service adds that organizations must have a license to operate in the Belgian financial markets. Some sites may not show up despite lacking a license, though, and part of the site's database will be populated by user-reported websites.
Editor's Note: Statements in this article have been translated from Dutch.
Belgium image via Shutterstock