Malta and the U.S Issues Fresh Guidelines on Crypto Frauds

Wilfred Michael 

Wilfred Michael

News reporter

25 April 2019,
Malta and the U.S Issues Fresh Guidelines on Crypto Frauds

The increase in the number of people falling victim to the activity of crypto fraudsters has led Malta and the U.S to add their name to the list of countries that recently issued guidelines on how to discover suspicious investments in the emerging industry.

A local publication, Times of Malta reported on April 25 that the Malta Financial Services Authority (MFSA) published a guideline which is useful and easy to read for anyone pondering investment into cryptocurrencies.

Unlike previous guidelines which focused on warning investors from throwing money into suspicious projects, the latest release by the MFSA reportedly shows how citizens can quickly identify the different strategies used by these fraudsters and what actions to take upon detecting such.

For instance, the MFSA warned that such scams are usually advertised online with click baits crafted to make users want to know more. The regulators also noted that these scams could be in the form of fake ICOs, crowdfunding platforms promising high returns once the token is launched and even fraudulent exchanges and wallet platforms.

To find these fraudulent projects, the MFSA advised members of the public to look out for loopholes such as unrealistic high rate of returns, the promise of easy withdrawals or safety of deposited funds, aggressive selling through limited time offers and many others.

Upon spotting that such a project is fake, targeted victims should proceed with caution, check whether such a crypto-related venture is registered and report to the MFSA if there is a need.

Meanwhile, just a day before Malta published its guidelines, the Investor education arm of the United States Securities and Exchanges Commission (SEC) released new guidance on how investors can identify fake cryptocurrency trading sites.

The U.S SEC’s guideline was a follow up on the regulator’s indictment of two Nigerians who acquired 50BTC through a fake cryptocurrency scheme which ran between December 2017 and June 2018.


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