Malta Financial Services Authority Issues Crypto Investment Scam Warning

The Malta Financial Services Authority (MFSA) has issued a warning against investment scams in the cryptocurrency industry.

In a new guidance note, the MFSA lists the most common types crypto scams, such as fake initial coin offerings (ICO), crowdfunding ventures promising higher gains which are availed of once the coin becomes active, and fake exchange platforms and fake e-wallet apps.

“At first glance, scams typically give the illusion of a legitimate and therefore may appear to be trustworthy,” the regulator said. “This sensation of trust is achieved by means of professional websites, and by employing people who are friendly and open to answer all your questions. Such business may also claim to be authorized and regulated. All these actions are intended to provide you with a false sense of security.”

To establish whether a scheme was a scam, the regulator provided a list of the 11 most common warning signs potential investors should consider. These include:

“The MFSA advises consumers of financial services to proceed with caution when investing, and not to invest in anything which they do not understand,” the MFSA said. “When a person or entity claims to be authorized or otherwise regulated by the MFSA, one should always check the veracity of such claims by confirming with the Authority’s Financial Services Register online.”

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