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Belgian regulator flags six unauthorized crypto providers after MiCA deadline

Created at 6 Jul · 12:30 PM1 source↑ Market-relevant
IN SHORT

Belgium's financial markets regulator warned consumers about six crypto-asset service providers operating without authorization, days after the EU's MiCA transitional period expired. The FSMA added the entities to its list of fraudulent CASPs and advised consumers against engaging with them.

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Key Numbers

sixunauthorized crypto providers flagged
July 1MiCA transitional period deadline

Who's Involved

FSMA
Belgium's financial markets regulator
Aurum Foundation
unauthorized crypto provider
Bank Bit
unauthorized crypto provider
Bithf Pro
unauthorized crypto provider
Dxago
unauthorized crypto provider
Global Dynamic Trade
unauthorized crypto provider
ZeriaFunding
unauthorized crypto provider

↳ Why This Matters

The warning from Belgium's FSMA signifies the beginning of enforcement under the EU's MiCA regulation, highlighting the increased scrutiny on crypto service providers and the potential risks for consumers engaging with unauthorized entities.

Key facts

  • Belgium's FSMA identified six unauthorized crypto-asset service providers (CASPs) operating in the country.
  • The regulator added Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade, and ZeriaFunding to its list of fraudulent CASPs.
  • The warning was issued shortly after the European Union's Markets in Crypto-Assets (MiCA) transitional period deadline of July 1.
  • FSMA advised consumers to avoid offers from these companies and to verify provider authorization.
  • The regulator also noted the volatility of crypto assets and the lack of compensation schemes for potential losses.

Belgium's financial markets regulator, the FSMA, has issued a warning to consumers regarding six crypto-asset service providers (CASPs) operating in the country without the necessary authorization. This action follows the expiration of the European Union's Markets in Crypto-Assets (MiCA) transitional period on July 1. The FSMA identified Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade, and ZeriaFunding as entities operating without authorization and has added them to its list of fraudulent CASPs. The regulator strongly advised consumers against accepting offers from these companies and emphasized the importance of checking the official CASP register for authorized providers. Additionally, the FSMA cautioned about the inherent volatility of crypto assets, potential liquidity limitations, and the absence of compensation schemes for user losses. MiCA, which entered into force at the end of 2024, established a harmonized EU framework for CASPs and issuers, requiring existing providers to obtain authorization or cease operations by the July 1 deadline.

Frequently asked questions

MiCA, or the Markets in Crypto-Assets regulation, is a European Union framework that establishes harmonized rules for crypto-asset service providers and issuers across the bloc.

The FSMA is the Financial Services and Markets Authority, Belgium's financial markets regulator responsible for overseeing financial services and ensuring consumer protection.

Unauthorized providers may operate without regulatory oversight, leading to risks such as volatility, liquidity limitations, and a lack of compensation schemes for potential user losses.

What Happens Next

01Consumers are advised to check the FSMA's official CASP register before engaging with crypto providers.
02Other EU national regulators are expected to increase enforcement actions following the MiCA deadline.

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Cadence

How It Developed

Belgium's FSMA warned consumers about six unauthorized crypto-asset service providers.
The FSMA added these entities to its list of fraudulent CASPs.
The warning comes days after the EU's MiCA transitional period expired on July 1.
FSMA advised consumers not to accept offers from the named companies and to check its official CASP register.

Sources

T1
Belgian regulator flags six unauthorized crypto providers after MiCA deadline Belgium’s FSMA warned consumers about six crypto-asset service providers it added to a fraudulent CASP list days after the EU’s MiCA transitional period expired.Cointelegraph

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