Belgium’s Financial Watchdog Warns of 19 Crypto Trading Platforms Showing Signs of Potential Fraud
As regulatory bodies from around the globe are seen taking stern measures to identify and arrest crypto-related illegal activities, more and more cases of fraud are emerging out. Recently, Belgium’s financial watchdog The Financial Services and Markets Authority [FSMA] has issued warning against 19 cryptocurrency exchanges showing signs of potential fraud.
The agency says that it “has received questions or complaints from consumers about and has established indications of fraud.” The authorities have assured that they will be taking all the necessary measures to protect the interest of investors.
The authorities have recently released the list of those 19 cryptocurrency exchanges which are swaying investors by making false claims while calling their platforms to be completely transparent for investors to trade. The list of those 19 crypto exchanges includes Cryptavenir, Crypto-banque, Crypto-infos, 01crypto, Btc-cap, Capital-coins, Coinquick, Finance-mag, Gme-crypto, Gmtcrypto, Good-crypto, Cryptos.solutions, Cryptos-currency, Ether-invest, Mycrypto24, Nettocrypto, Patrimoinecrypto, and Ydconsultant.
The FSMA has said that the list includes only those platforms that are reported by customers and no other that too might have questionable means of operations. The FSMA said that in the recently growing craze around cryptocurrencies, several online platforms have been recently seen luring customers. “They claim to offer the best (or one of the best) trading platform(s) on which, both beginners and professionals” can trade instantly, said the FSMA.
The financial agency said that it has received several complaints from customers where they claim to be unable to pull back their invested money as well unable to contact the company. The FSMA has quoted one customer saying: “I invested via a platform that claimed to have a license. 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 FSMA has asked crypto investors to remain cautious and alert for any such indications of investment fraud. It has asked investors to “Always verify the identity of the company (identity details, country of residence, etc.),” and to “Never trust a company if it cannot be clearly identified.”
The FSMA has also asked investors to demand clear and under stable information of the exchange operations while also remaining critical of that information. The FSMA elaborated saying: “Many platforms for crypto trade promise a guaranteed return or full capital protection. However, those promises are one big illusion in the crypto-coin sector! If an offer is fraudulent, the promised guarantee is undoubtedly [too].”