Six Crypto Firms Added to Belgium's Fraud List Following MiCA Transition Deadline
The FSMA in Belgium issued a consumer alert regarding six cryptocurrency service providers now listed as fraudulent operators, coming shortly after the EU's MiCA transitional period concluded.
The Financial Services and Markets Authority in Belgium has issued a consumer warning concerning six cryptocurrency service providers (CASPs) allegedly conducting operations within Belgian territory without proper authorization, coming just days following the expiration of the European Union's Markets in Crypto-Assets (MiCA) licensing transition period.
This past Monday, the Financial Services and Markets Authority (FSMA) publicly identified multiple CASPs conducting business in Belgium without securing authorization as required under MiCA regulations. The FSMA specifically named Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade and ZeriaFunding. According to the regulatory body, these entities have now been included in its official list of fraudulent CASPs.
This consumer alert serves as evidence that national regulatory authorities throughout the region are now starting to enforce the MiCA licensing framework after the EU's transitional period reached its conclusion on July 1.
The financial watchdog based in Brussels issued a strong recommendation to consumers, urging them to decline any proposals from the companies it named and instructing users to verify whether any provider appears in its authorized CASP register. The FSMA additionally cautioned that cryptocurrency assets are subject to high volatility, can experience liquidity constraints and lack protection from compensation programs that would provide reimbursement to users in the event of financial losses.
Cointelegraph reached out to FSMA requesting additional information but had not received a reply at the time this article was published.
MiCA deadline starts enforcement phase across Europe
The Markets in Crypto-Assets regulation became effective in late 2024, establishing a unified European Union regulatory framework governing CASPs and token issuers. According to Belgium's FSMA regulatory guidelines, exclusively authorized CASPs have permission to provide cryptocurrency asset services including custody solutions, trading platform operations, fiat-to-crypto exchange services, crypto-to-crypto exchange services, order execution functions, transfer services, advisory services and portfolio management offerings.
The transitional regime in Belgium reached its expiration on July 1, which marked the same date that existing service providers throughout the European Union were generally required to secure proper authorization or cease providing crypto-asset services to customers.
This regulatory deadline has represented a significant challenge for cryptocurrency businesses conducting operations within the European bloc. On June 24, cryptocurrency exchange platform Binance withdrew the MiCA authorization application it had submitted in Greece and announced plans to pursue authorization in a different EU member state, doing so merely days ahead of the July 1 deadline.
During that announcement, the exchange platform clarified it was "not leaving Europe" while recognizing that certain users might experience disruptions as the company worked toward achieving compliance with all applicable regulatory requirements.