Regulations on Crypto Scams Issued by Malta’s Financial Regulators

On April 26 news outlet Times of Malta reported that financial regulator of Malta has issued an announcement to the public with respect to the perils of crypto resources and the likelihood for scams.

In March, Malta Financial Services Authority’s (MFSA) designated CipherTrace, a blockchain security firm, to take care of the audit and assess perils like financing terrorism risks and money laundering identified with crypto business. CipherTrace is currently accountable for managing regulatory means and audit risk management of virtual asset enterprises licensed in Malta.

The new regulation note by MFSA expects to caution the general population about investments in digital currency and related dangers. Alongside it also teach individuals on the best way to distinguish and to stay away from trickery and swindling plans.

The ordinance traces the most popular kinds of cryptocurrency related fraudulence including the initial coin offerings (ICOs), crowdfunding projects that offer raised profits once the coin gets active, alongside fake e-wallet applications and fake exchange platforms.

The MFSA confirmed its initial 14 crypto assets operators that earlier solicited a permit. After nearly five months when the Maltese government received the Virtual Financial Assets Act. The licensed professionals are currently obliged to assess the business strategies of their clients so as to make sure that they are legitimately outfitted before presenting an application to the MFSA.

Furthermore, the declaration asserts the 11 most general cautions possible investors ought to consider, covering – “unrealistically high rates of return which are usually higher than the market average; promises that any funds deposited are 100% guaranteed; aggressive selling techniques which put pressure and rush you to secure a sale; the contradiction between documents and spoken information.

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