The Latvian Financial and Capital Markets Committee has identified suspicious transactions and fraudulent attempts in the area of ​​local cryptocurrency.

In an official warning issued on Monday, FCMC urged investors “to be especially careful as cryptocurrencies operate on an infrastructure that is currently subject to fewer rules than financial and capital markets.”

In Latvia, the issuance and trading of cryptocurrencies is largely unregulated, with the exception of certain types of investment and contractual services related to cryptocurrencies, which require permission from the FCMC.

The regulator shared some details about the “signs of fraud” that it identified in the local cryptocurrency market. FCMC notes that online advertisements distributed by scammers may use “names and images of celebrities or licensed companies”. These ads often direct investors to great websites where they are asked to provide their phone number. The regulator said that many attempts to convince investors to “invest” in fraudulent schemes are carried out over the phone.

Fraudsters can also impersonate authorized market participants or obtain legitimate company registration numbers or contact information in order to mislead investors.

FCMC writes: “Bogus companies can offer you investments in bonds, stocks, forex and cryptocurrency products that are either not traded on exchanges or useless, bloated, or even don’t exist.” In particular, the regulator stressed that investors in the absence of state supervision are not protected in the event of illegal actions.

Instead of being tempted by seemingly practical online investment opportunities, FCMC offers:

“With regard to the non-financial services that you want to invest in, we recommend that you contact a licensed or licensed banking or investment brokerage company. These service providers are required to communicate potential risks and make proposals that are commensurate with the client’s risk profile. ”

Source: CoinTelegraph

LEAVE A REPLY