A list of 19 digital currency trading platform has been issued by the Belgian financial authority; in responses to queries receive about these platforms. According to the Belgian authority, these trading platforms reveal signs of fraudulent activities.
Recently, the Financial Services and Markets Authority (FSMA) of Belgium have cautioned against fraud-based virtual currency platforms. The Government authority also issued a registry of 19 crypto platforms it “has received questions or complaints from consumers about and has established indications of fraud,” the regulatory body wrote.
The 19 firms listed by the agency are namely; 01crypto, Btc-cap, Capital-coins, Coinquick, Crytavenir, Crypto-banque, Crypto-infos, Cryptos.solution,Ydconsultant, Finance-mag, Good-crypto, Nettocrypto, Mycryto24, Cryptos-currency, Ether-invest, Eurocryptopro, Gmtcrypto, Gme-crypto and Patrimoinecrypto.
The government institution stresses that this registry does not take into account all questionable trading platforms – just the ones that consumers have raise complaints about.
Consumer filed reports
In using the same methodologies to bait investors, many fresh platforms have been established online, sighted FSMA. They emphasize that they provide the “best (or one of the best) trading platform (s) on which both beginners and professionals” in which client(s) can confidence on and start trading immediately, explained the financial watchdog.
Among the filed report admitted consist of client’s inability to recover their investment and the client’s incapability to communicate with the firm after investment has been made. “I invested via a platform that claimed to have a license,” FSMA quoted one client. “When I asked for the refund of my money, I was promised that my money would be refunded on a certain date. However, I have never received anything and now I do not even get access to the platform.”
The Agency’s Cautions
In its attempt to reduce victims of these scam companies, the FSMA prompt investors to be careful and “remain vigilant for all indications of investment fraud”.
Presently, there is no monitoring implemented on online platforms that are vigorous in virtual currency industry. As a result, investors should be doubtful when companies state that they in possession of a permit or license issued to them by the government agency. In addition, majority of these firms where established less than 12 months ago, detailed the regulatory body.
FSMA also commented that investors should request for comprehensible and clear information from the firms as well as seriously scrutinizing the information.
Full capital protection or guaranteed returns are promised by numerous platforms for virtual currency trade. Nonetheless, those vows are greatly unreal in virtual-coin industry! If a request is fraudulent, the promised guaranteed is less secured also.
The government institution claims that investors should be doubtful of promises of abnormal profits, I conclusion, due to the fact that “if a outcome seems too enticing to be true, normally it is”