Complaints from consumers following bogus crypto-currency investment offers are on the increase, the Financial Services and Markets Authority (FSMA) revealed on Thursday. The FSMA has warned the public against platforms proposing this type of investment, which can often be fraudulent.
Consumers who contacted FSMA complained that they never recovered the money they deposited or that they had heard nothing more from the company after they invested their money.
These fraudulent operators often claim to offer the best trading platforms, enabling anyone from beginners to professionals to trade in crypto-currencies instantaneously and in all confidence, according to the FSMA. They also propose other financial products, especially savings accounts with supposedly guaranteed yields, management mandates or derivatives.
The FSMA calls on prospective investors to always verify the identity of the companies, to demand clear information and to be wary of promises of gains. Many crypto-currency trading platforms promise guaranteed yields or protection of the investor’s entire capital, the authority warned, adding that such promises are, however, illusory in the crypto-currency sector.
The FSMA has also updated the list of crypto-currency trading platforms for which it has received complaints from consumers and observed indications of fraud.