Belgian Government Launches Site to Warn Crypto Investors About Scams
A new website launched by Belgian government agencies outlines different ways to avoid crypto fraud.
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.
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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.