26 October 2018 – Malta’s Financial Services Authority (MFSA) has cautioned against a “dubious” online cryptocurrency trading platform that is reportedly falsely claiming to be licensed in the country.
Is Primetradingbot reliable?
According to local media outlets, the platform in question, “Primetradingbot,” reportedly runs a “high yield” Bitcoin-related investment scheme. The regulator notes that the scheme has “a dubious nature with a high risk of loss of money”.
The MFSA also warned that Primetradingbot is not licensed by the watchdog. However, the firm claims to have the official registration. The regulatory body stated that “although this entity purports to operate from an address in Malta, the MFSA does not believe this to be the case.” The watchdog added:
“The MFSA wishes to alert the public, in Malta and abroad, that Primetradingbot is not licensed or otherwise authorized by the MFSA to provide any investment or other financial services which are required to be licensed or otherwise authorized under Maltese law.”
Malta's Crypto Stance
An extensive list of entities that are legally authorized by the Maltese regulator can be found on the official website of the MFSA. The regulator has warned the public not to involve in any business or transactions with the suspect firm.
Malta is widely recognized as the “Blockchain Island.” The country has adopted a cryptocurrency-friendly stance earlier this year. It has a transparent and proactive cryptocurrency regulatory environment, thus attracting a number of high-profile cryptocurrency firms to the island.
According to Malta’s Virtual Financial Assets Act (VFA), which was passed in July 2018, all practitioners, including lawyers, accountants, and auditors, who intend to liaise between the MFSA and the crypto vendors have been required to take on the mandatory “continuous professional education.” These practitioners also are required to take an exam to receive a crypto agent qualification.
It was reported that only 39 percent of those taking an exam managed to attain a pass.
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