Latvian Regulator Warns Against Growing Crypto Frauds
- The country does not regulate the issuance and circulation of cryptocurrencies.
Latvia’s Financial and Capital Market Commission (FCMC) issued a warning on Monday against the growing frauds with digital currency investment schemes that are targeting victims on various channels.
The regulator specified that advertisements about crypto investments on the internet are mostly frauds. These schemes offer high-interest rates for short-term investments luring many potential victims.
Additionally, fraudsters are impersonating regulated companies to trap potential victims. Other European regulators are constantly flagging such clone platforms.
“Fraudsters tend to advertise cryptocurrency investments on the internet, sometimes using the names and images of well-known individuals or licensed companies,” the Latvian regulator stated (translated from Latvian).
These platforms look legitimate and prompt potential victims to share their contacts so that they can approach them with bogus offers. Many of these fraudsters even sell non-existent cryptographic assets to push them for further investment.
“Such fictitious companies may offer you investments in bonds, stocks, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term currency products, and cryptocurrencies that are not traded on a trading venue are worthless, exaggeratedly priced or do not even exist,” the regulator stated.
Cryptos Need Regulations
The FCMC further clarified that the issuance and circulation of digital currencies are not regulated in Latvia, and that is allowing many of these scammers to spawn. However, some crypto investment instruments, including contracts for differences (CFDs), are regulated in the country.
It urged investors to become vigilant against these fraudulent platforms and become cautious before any cryptocurrency investments.
“In the interests of investor protection, the FCMC warns against such possible fraud schemes and urges investors to be vigilant, as Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term operate in an infrastructure that is currently characterized by lower regulation than in the financial and capital markets,” the FCMC stated.
Latvia’s Financial and Capital Market Commission (FCMC) issued a warning on Monday against the growing frauds with digital currency investment schemes that are targeting victims on various channels.
The regulator specified that advertisements about crypto investments on the internet are mostly frauds. These schemes offer high-interest rates for short-term investments luring many potential victims.
Additionally, fraudsters are impersonating regulated companies to trap potential victims. Other European regulators are constantly flagging such clone platforms.
“Fraudsters tend to advertise cryptocurrency investments on the internet, sometimes using the names and images of well-known individuals or licensed companies,” the Latvian regulator stated (translated from Latvian).
These platforms look legitimate and prompt potential victims to share their contacts so that they can approach them with bogus offers. Many of these fraudsters even sell non-existent cryptographic assets to push them for further investment.
“Such fictitious companies may offer you investments in bonds, stocks, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term currency products, and cryptocurrencies that are not traded on a trading venue are worthless, exaggeratedly priced or do not even exist,” the regulator stated.
Cryptos Need Regulations
The FCMC further clarified that the issuance and circulation of digital currencies are not regulated in Latvia, and that is allowing many of these scammers to spawn. However, some crypto investment instruments, including contracts for differences (CFDs), are regulated in the country.
It urged investors to become vigilant against these fraudulent platforms and become cautious before any cryptocurrency investments.
“In the interests of investor protection, the FCMC warns against such possible fraud schemes and urges investors to be vigilant, as Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term operate in an infrastructure that is currently characterized by lower regulation than in the financial and capital markets,” the FCMC stated.