Malta Financial Services Authority has alerted the public about an intended Ponzi like a crypto-based firm that is fooling the public that it is registered to operate in Malta.
According to the press release on July 23, the Malta Financial Services Authority (MFSA) alerted the public that they should avoid Emirate Coin Tech, that offers cryptocurrency investment options with a so-called weekly payout of up to 25%.
The press statement reads, “The MFSA wishes to alert the public, in Malta and abroad, that Emirate Coin Tech is NOT a Maltese registered Company NOR licenced or otherwise authorised by the MFSA to provide any investment, cryptocurrency or other financial services which are required to be licenced or otherwise authorised under Maltese law.”
Emirate Coin Tech ensures to provide various investment tools through a method recalling of a Ponzi scheme.
Moreover, the financial regulator said that the confidential information that it retains indicates that the Emirate Coin Tech is possibly to be a scheme of suspicious nature with the high risk of loss of money. The regulator requested the public to stay away from undertaking any business or transactions with the entity.
The company claims itself to be an MFSA licensed investment and crypto exchange institution with a physical presence at 1000 Mahler Building (floor 4), Gustav Mahlerlaan 1025, 1082, Amsterdam, The Netherlands.
Moreover, the firm refers itself to be the fast-growing investment and brokerage company, which started in 2013, and its main aim is to transform the way people invest in cryptocurrencies. The firm says that it stresses on trading and mining cryptocurrencies on contract for investors, and securing the highest possible return on the investment with a potential risk.
MFSA also requested to the consumers of financial services not involve in any financial services transaction until they have known that the entity with whom they transaction will be carried out is approved to offer such services by the regulator or another reputable financial regulator in the world.
Investors are also requested to be cautions while approached for financial services through channels like social media or telephonic calls. The regulator asked the public to visit the official site to check the complete list of entities that are licensed to provide financial services in the country.
Malta is popular for cryptocurrency and blockchain businesses, having effectively formed a relaxed regulatory framework that supports innovation in the Blockchain Island concept.
Various popular crypto businesses have set up their base in the country, along with a leading crypto exchange Binance.
The MFSA plays an effective role in the local market; in May, the firm has also appointed one blockchain company to track crypto participants compliance with its rules.