Maltese Government Warns Against Illegal Cryptocurrency Companies

The government of Malta through its financial regulatory body recently issued strong warnings against two cryptocurrency firms who allegedly said they were registered in the country. The Malta Financial Services Authority (MFSA) warned that Coinmalex and Crypto Foxtrades are not officially registered companies in the country.

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Two Cryptocurrency Startup Claims to be registered in Malta

Just recently two cryptocurrency startup companies who claimed to be registered in Malta were categorically disowned by the Maltese Government. Through its financial regulator the MFSA, Malta issued a statement saying that the two companies are illegal in Malta and their claims of licensure in the country were false.

According to the MFSA one of the companies, Coinmalex’s posted a document claimed to be from the Malta Business Registry, an institution within the small Island country in charge of registering all business names. MFSA, however, said the document the company claimed it’s from the country’s business registration body is also forged. The MFSA revealed that Malta stopped using the British royal coat of arms in 1964 after gaining independence from Britain. The document Coinmalex shared is still exclusively headed with the old coat of arms, which the country no longer uses.

Meanwhile the second company Foxtrades claimed in it’s about section of the website saying it is registered with the Malta Financial Services Authority. The company further claimed that it is mandated and regulated by the authority to operate as a category 3 Investment Service Provider. MFSA also reiterated that Crypto Foxtrades did not receive any form of licensure or regulation from the said authority or any government agency.

The General Public Warned

Meanwhile, the MFSA issued serious warnings to the general public to stay clear of companies looking to extort money from unsuspecting investors. The MFSA in a statement said it would wish to alert the public both resident in Malta and abroad that the companies Crypto Foxtrades and Coinmalex are not registered or licensed in Malta. The notice said the companies do not operate under the Maltese law and are not regulated by Malta.

Malta’s welcoming financial laws have attracted hundreds of cryptocurrency companies to set up businesses in the Country. However, many of these companies are not actually registered with the official financial regulatory authority in the country. Since the cryptocurrency boom of late 2017 many cryptocurrency businesses shifted headquarters in Malta amidst unfavorable regulatory bottlenecks in the other countries.

With pressure from external economies like the US and the UK, Malta’s former colonial master, the country developed laws to be abided by all cryptocurrency companies following EU and US AML and KYC laws. Recently Malta announced that the cryptocurrency exchange Binance was not registered to operate in the country and so all Binance operations or usages within Malta were illegal.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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