The Belgian authorities published a list of nineteen cryptocurrency trading firms that it received complaints about.
The regulators state that these platforms indicate clear signs of fraud.
Belgium’s Financial Services and Markets Authority recently warned about fraudulent cryptocurrency trading platforms. The agency published a list of nineteen cryptocurrency platforms it has in their words “received important questions as well as complaints from consumers about which has established signs of fraud,” the agency recently wrote.
They platforms in question are: 01crypto, Finance-mag, Gme-crypto, Gmtcrypto, Good-crypto, Mycrypto24, Nettocrypto, Patrimoinecrypto, Btc-cap, Capital-coins, Coinquick, Cryptavenir, Crypto-banque, Crypto-infos, Cryptos.solutions, Cryptos-currency, Ether-invest, Eurocryptopro, and Ydconsultant.
The regulatory agency further emphasized this list does not include all questionable crypto-trading platforms – only the ones which consumers have recently filed reports about.
Burgeoning Consumer Complaints
Belgium’s Financial Services and Markets Authority noted that several new platforms have emerged on the web, using similiar methods to lure investors. “They claim to offer the one of the best trading platforms on which both newbies and professionals can trust” and trade on instantaneously, the financial regulatory body detailed.
Complaints that Belgium’s Financial Services and Markets Authority received included customers which were unable to reclaim their invested funds as well as customers unable to reach the company staff once having invested.
Warning & Subsequent Advice
In its warning, Belgium’s Financial Services & Markets Authority (FSMA) urged investors to be cautious as well as to “remain vigilant for all indications of fraud.” The agency recommends investors to “verify the identity of the company (identity details, the country of residence, etc.),” as well as to “never trust a company if it can’t be clearly identified.”
Investors should always be wary of companies that claim to have a permit by a supervisory authority, the FSMA described, stating that currently “no supervision whatsoever is exercised on online platforms that are active within the cryptocurrency sector.” Further, most of these companies were founded less than only a year ago, the agency commented.
Investors should “demand clear, understandable information” from these companies and also “remain critical of said information,” Belgium’s Financial Services & Markets Authority went on to say:
Many platforms for cryptocurrency trading promise a “guaranteed” return or “full capital protection”. However, those “guarantees” are an illusion in the cryptocurrency sector. If an offer is fraudulent, the promised guarantee is undoubtedly fraudulent as well.
In conclusion, the regulatory agency emphasized further that investors should always “Be wary of promises of excessive profits. If a capital return seems too good to be true it usually is.”