Malta Financial Services Authority Warns Public Against Two Unlicensed Crypto Exchanges

Malta Financial Services Authority Warns Public Against Two Unlicensed Crypto Exchanges

The
Malta Financial Service Authority (MFSA) has issued warnings against two crypto
companies that falsely claimed to be under their oversight.

The
MFSA yesterday issued separate warnings against two crypto exchanges Crypto
Foxtrades and COINMALEX. They both claimed to be licensed or registered by the
nation, yet, the MFSA has denied all of such claims.

According the financial regulator, Crypto Foxtrades has indicated on its website that it is licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority. However, MFSA wishes to alert the general public that the exchange is not a Maltese registered company.

The
MFSA claims it
has not authorized Crypto Foxtrades to provide crypto exchange services or
other financial services which are required to be licensed under Maltese law.
The regulator therefore urged the public to refrain from undertaking any
business or transaction with the company.

A
similar warning was also issued
on the same day to another crypto company, COINMALEX. According to the MFSA,
Coinmalex purports to operate from an address in Malta. The regulator said it
does not believe this is the case.

The MFSA further alleged that, information available to them suggests that Coinmalex is likely to be a scam. Due to the above reasons, the MFSA has advised the public to refrain from undertaking any business or transactions with the company.

The
Malta financial regulator urged the public not to enter into any financial
services transaction with a company unless they have ascertained that the
company is authorized to provide such services.

It added that, investors should be extra cautious whenever they are being approached with offers of financial services via unconventional channels like telephone calls or social media. The regulator further advised investor to visit its website for a list of licensed and regulated companies.       

Published at Thu, 26 Mar 2020 18:32:46 +0000

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