The authorities in Belgium have launched a website that will help educate the masses about the risks associated with cryptocurrency investments. This was made known by the FPS Economy (FPS) in a public statement yesterday.
The agency noted that the sharp rise in interest of cryptocurrency investments which they believe causes a lot more people to be scammed.” Reports by the agency revealed that investors in the country have recorded losses to the tune of €2.2 million ($2.5 million) in crypto scams last year. The FPS added that this is only a fraction of what happened since only 4% of crypto fraud cases are reported, according to their estimations, investors in Belgium lose about €130 million ($152 million) to scam crypto projects per year.
The website which has been named “Too Good to Be True” was designed by the FPS Economy and the Federal Services and Markets Authority (FSMA). The agencies warn the public about the risks involved in cryptocurrency investments, adding that fraudsters usually promise their victims big profits and most of the time they seem reliable. For potential cryptocurrency investors, the site encourages them to conduct research about a project before investing in it, adding that they should also be “cautious when paying online with cryptocurrencies.”
There is a portal on the site where users can report cases of suspicious companies, with a scanner added on the website screen for users to lodge complaints of fraud. Information on the site reveals that even if a company claims not to be involved in cryptocurrency scams, it doesn’t necessarily mean that the project has a valid license and would require additional consideration. The site added that companies sometimes change their names so as to avoid being listed as a scammy or fraudulent company.
Belgium isn’t the first country to make this move. In May, Office of Investor Education and Advocacy at the US Securities and Exchange Commission (SEC) designed a fake initial coin offering (ICO) website with the aim of increasing awareness of the public about the warning signs of fraudulent ICOs while also promoting investor education. The website has some interesting contents such as archetypical details of a scam ICO such as a blurry or false whitepaper, guaranteeing investors returns, and sometimes celebrity endorsements.