Malta crack down on illegally based crypto companies

• The Financial Services Authority in Malta has called out the “COINMALEX” and “Crypto Foxtrades” crypto platforms in a twin warning earlier this week. 
• Both of the top platforms have claimed to be licensed, registered or based in Malta. However, all of these claims have been denied by the MSSA.

The Financial Services Authority in Malta has called out the “COINMALEX” and “Crypto Foxtrades” crypto platforms in a twin warning earlier this week. Both of the top platforms have claimed to be licensed, registered or based in Malta. However, all of these claims have been denied by the MSSA.

On COINMALEX about the page, it features a document that claims to be from the Malta business registry. Whereas this is a real institution within the small European state, the legitimacy of it on the platform's website is questionable.

When looking at Crypto Foxtrades about us page, it takes a more direct route in regards to its ties to Malta. The platform claims to be licensed and regulated as a third category investment service provider. Again, this is a real category however, the MFSA have insisted that the platform is not licensed under it.

Malta financial services authority has said the following:

“The MFSA wishes to alert the public, in Malta and abroad, that Crypto Foxtrades is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide the service of an exchange or other financial services which are required to be licensed or otherwise authorised under Maltese law.”.

The Malta authority has been policing these cryptocurrency businesses since 2018 with an iron fist. They have issued warnings wherever and whenever necessary if they claim to see a fraudulent license. One thing worth noting is that one of the biggest crypto platforms in the industry, Binance was found to never have operated in Malta and was never actually regulated by the MFSA.

For more news on this and other crypto updates, keep it with CryptoDaily!