Belgium’s financial regulatory agency has issued a new warning over crypto trading platforms, citing rising complaints from consumers.
The Financial Services and Markets Authority (FSMA) released its warning earlier this week on its website.
According to the announcement, the agency is continuing to receive complaints from consumers who have invested money into various platforms. It initially warned potential consumers of crypto fraud in February. At the time, it stated:
The FSMA warns the public about these new platforms, since often there are fraudsters behind them who are now using cryptocurrencies to swindle consumers.
The warning went on to say that the fraudulent platforms all offer the same thing to unsuspecting investors: being the best platform to offer investors the chance to invest in seconds and with full confidence. Unfortunately, too many people are falling for these.
As a result, it has prompted the regulator to issue a second warning. It has also updated its list of crypto trading platforms where fraud has been identified. However, it adds the caveat that the list is not exhaustive.
The crypto market is continuing to attract interest. Consequently, this is seeing a rise in the number of scam artists who are using it to make a quick buck. Yet, while fraudulent crypto trading platforms promise great things to investors, they simply end up stealing people’s money. The agency said:
Since its most recent warning the FSMA has continued to receive new customer complaints. The number of victims of cryptocurrency fraud clearly continues to increase. Consequently, the FSMA reiterates its warning against such fraudulent practices.
Belgium’s financial regulator isn’t the only one taking action to warn investors of crypto fraud.
Worldwide, a number of agencies have issued warnings. Last month, three cryptocurrency platforms were issued with cease and desist orders in Colorado. It’s reported that this was due to their failure to register their initial coin offerings (ICOs) with authorities in the U.S. state before promoting them to the public.
Elsewhere, the U.K.’s Action Fraud agency has issued its own warning to crypto enthusiasts to beware of potential fraud. According to the report, June and July saw £2.1 million lost in cryptocurrency scams.
Yet, just as the crypto market is making a profit for investors, so too is it making money for criminals. Because of this, it’s unlikely that fraudsters will shy away from taking advantage of it as best as they can.
Have you been a victim of crypto trading fraud? Let us know in the comments below.
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Tags: Belgium, Crypto Trading, fraud, FSMA