Malta’s Financial Regulator issues guidance note on Crypto Assets

  • Malta’s Financial Regulator instructs masses on crypto security 
  • CipherTrace was appointed to look after audit and security.

The Times of Malta reported that Malta’s financial regulator has delivered a note to the public concerning scams related to Crypto Assets. The Malta Financial Services Authority’s (MFSA) intends to educate the masses about the risk of scams regarding cryptocurrency. The guideline addresses issues related to the digital currency associated scams which entails fake initial coin offerings (ICOs), crowdfunding ventures, fake exchange platforms, and phony e-wallet apps.

The report also states the 11 most common warning signs potential investors should consider, including: 

“unrealistically high rates of return which are usually higher than the market average; promises that any funds deposited are 100% guaranteed; aggressive selling techniques which put pressure and rush you to secure a sale; the contradiction between documents and spoken information.” 

Earlier this month, the MFSA validated its first 14 crypto assets agents who previously sought a license whose approval came five months after the Virtual Financial Assets Act. Their duty includes safeguarding their customer’s business plan before applying the MFSA.

In March, CipherTrace, a blockchain security firm, was appointed by the MFSA to look after the audit and inspect risk like money laundering and financing terrorism risks related to crypto business. 

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