Malta’s regulatory watchdog advises investors to stay away from “Bitcoin Revolution” scam
In an interesting development on Friday that again brings to light the risks associated with the use of cryptocurrencies, the Maltese regulatory watchdog, Malta Financial Services Authority (MFSA) issued a warning against an alleged scam dubbed as “Bitcoin Revolution,” according to an official document published on Friday.
According to the report, the website promotes itself by means of advertisements and pages on various social media platforms which links the website to various leading local personalities without their consent. Moreover, the website also reports the profits made by these individuals in order to lure unsuspecting customers.
The MFSA has warned users that there is no such entity by the name of “Bitcoin Revolution” registered with the regulatory body or in any way authorized by the MFSA to provide any investment or other financial services under the Maltese law. The Virtual Financial Assets Act (VFA) was passed in July 2018.
The document released by MFSA further state that Bitcoin Revolution is an international “get-rich-quick” scam and the general public should refrain from undertaking any business or transactions with the entity operating under the name of Bitcoin Revolution.
The MFSA has strongly advised investors that prior to making any investment or entering into any financial services transaction they should make sure that the entity with whom the investment or transaction is being made is authorized to provide such services by the MFSA or other financial services regulatory authority.
The “Bitcoin Revolution” scam was first reported on Jan. 10. According to local reports, the fraudulent scheme was initially found on a website called Major News.
Malta has positioned itself as the focal point of crypto innovation and is one of the preferred destinations for the crypto firms. It is seen as the most inclusive country in the world for cryptocurrency proponents.
In October last year, Joseph Muscat, the Prime Minister of Malta, spoke with great optimism and enthusiasm about cryptocurrencies and the underlying blockchain technology in a speech at the 73rd session of the United Nations General Assembly. He spoke about the prospects of digital currencies and how it will act as the inevitable evolution of what we call money today.
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