Malta Financial Regulator Calls Primetradingbot Crypto Trading Program a Scam to Public
Local sources have reported that Malta’s Financial Services Authority has warned the citizens of the country that a new online crypto trading platform was falsely operating in the country by stating that it was licensed. The platform was known as Primetrading bot and it was running a high yield investment program using Bitcoin.
High yield investment programs (HYIPs) are known for being mostly scams and to have very high risks for the investors that decide to give them a chance. Most of them have no assets and work like Ponzi schemes with multilevel marketing techniques.
The Malta Authority has clarified that this company has a dubious nature and that it is not licensed by the country at all. The trading bot is in no way licensed by the watchdog and it also does not operate in Malta, the authority affirms. This means that the company is currently operating against the law.
Malta’s Financial Services Authority has used the chance to inform the citizens that they can find a list of all the companies working in the country here. According to the agency, no company that is not featured on the list should be trusted as it is probably lying about being licensed in Malta.
This means that the healthiest attitude from an investor should be to use this information to avoid engaging with companies that are based officially based in the country.
You probably already know if you are in the crypto circles for a while, but Malta is known as the Blockchain Island. The nation has made a conscious effort to turn itself into the crypto nation and has been internationally regarded as a very transparent and proactive place to start a crypto business because of this.
It is mostly because of this that so many scams end up using Malta and similar countries’ names. With all the confidence that these places pass, they tend to be good places for companies to settle in, so scammers are aware of this and use this to trick people.
All Malta’s Virtual Financial Assets Act has passed some months ago, now any person who wishes to liaise between crypto vendors and the government will need a license and qualification, so this will make it easier to understand the risks that you have when someone states that their business operates in Malta.