Malta’s financial regulator has issued warnings against two cryptocurrency exchanges that claim to have valid licenses to operate in the country. The nation’s watchdog denied that COINMALEX and Crypto Foxtrades operate under local legislation, and advised potential customers to refrain from using them.
MFSA Versus Crypto Foxtrades
The first warning issued by the Malta Financial Services Authority (MFSA) was aimed at an entity operating under the name of Crypto Foxtradex. It’s a cryptocurrency exchange claiming to be a “licensed and regulated trading platform that serves over 500,000 customers globally.”
Crypto Foxtrades’ website declares that it’s a “licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority.”
The nation’s watchdog, however, dismissed issuing a valid permit for the exchange:
“The MFSA wishes to alert the public, in Malta, and abroad, that Crypto Foxtrades is NOT a Maltese registered Company NOR licensed or otherwise authorized by the MFSA to provide the service of an exchange or other financial services which are required to be licensed or otherwise authorized under Maltese law.”
MFSA ultimately warned all potential clients to abstain from undertaking any business endeavors or transactions with the entity.
MFSA Versus COINMALEX
The second warning targeted another entity portraying to act as a legitimate cryptocurrency exchange.
Dubbed COINMALEX, the website claims that it “offers trust assets management of the highest quality on the basis of profitable Cryptocurrency trading through Crypto exchanges.” Moreover, COINMALEX also states that it operates from an address in the country. The MFSA, however, “does not believe that this is the case.”
The country’s financial regulator denied again ever issuing a valid license to COINMALEX or that the exchange has ever requested one in the first place.
MFSA also warned customers to act with utmost vigilance when it comes down to operating with any sorts of financial services, which are required by law to have licences. Additionally, customers should be particularly careful when the entities initiate the contact:
“Investors should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.”