Some countries across the world have kept a bluntly negative attitude towards cryptocurrency, wherein the governance ensures that they forewarn their citizens about the risks involved in cryptocurrency related investments.
On a similar note, Malta’s financial regulator issues a note to the public that elaborated and warns them about the risks of crypto assets and the possibility for scams, as reported by news outlet Times of Malta on April 25. The new guidance note from the Malta Financial Services Authority’s (MFSA) not just warns the public, but it is also aimed at educating people on how to identify and avoid scams and fraudulent schemes.
Reportedly, the guidance outlines the most common types of digital currency-associated scams including the initial coin offerings (ICOs), crowdfunding ventures that offer higher gains once the coin becomes active, along with fake exchange platforms and fake e-wallet apps. Further, a list of 11 most common warning signs was provided that potential investors should consider, including “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; contradiction between documents and spoken information” among others.
At the start of the month, the MFSA approved its first 14 crypto assets agents that previously sought a license. After almost five months after the Maltese government adopted the Virtual Financial Assets Act. The licensed agents are now obliged to evaluate their customers’ business plans in order to ensure that they are properly prepared before submitting an application to the MFSA.
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