New Malta’s Financial Regulator Guidelines Warn Bitcoin Investors About Risky Crypto Scams


According to a Malta-based news outlet, the nation’s financial regulator has just released a fresh set of guidelines to the public warning them about the various dangers that currently exist when it comes to crypto assets.

Additionally, a spokesperson for the Malta Financial Services Authority (MFSA) also stated recently that the crypto sector was full of risks and that it was the government’s responsibility to educate the masses on how to identify and stay clear of potential scams.

More On The Matter

A closer look at the aforementioned guidelines shows us that the MFSA has charted out a few common types of altcoin scams that are regularly employed by fraudsters. These include:

  • Fake initial coin offerings (ICOs)
  • Certain crowdfunding ventures that promise their investors with insane interest rates
  • Fake token-exchange platforms
  • Fraudulent e-wallet apps.

    In addition to this, the document also contains a list of 11 things that investors should consider before putting their money in any project. These include:

  • Unrealistically high rates of return which are usually higher than the market average
  • Guaranteed returns
  • Aggressive selling techniques designed to put pressure on an investor

Other Details Worth Pointing Out

Some of our regular readers may remember that earlier this month, the MFSA approved a total of 14 crypto assets agents that had previously been looking to obtain a license. To be a bit more specific, we can see that the government body’s approval came five months after the enactment of the Virtual Financial Assets Act,

As a result of the aforementioned changes, agents are now required to “evaluate their customers’ business plans” so as to make sure that they are adequately prepared to face any financial uncertainty later down the line.

Final Take

In closing out this piece, it should be pointed out that last month, the MFSA hired the services of blockchain security firm CipherTrace to monitor the activities of the nation’s on-shore crypto businesses. As per various media reports, the United States-based company is working hand in hand with the MFSA to combat individuals indulging in activities like money laundering and economic terrorism.

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