‘Blockchain Island’ Malta Warns Of Unregulated Crypto Broker

Earlier this year, the Maltese Parliament passed a law setting the framework for blockchain, cryptocurrency, and digital assets.

Although several top crypto exchanges have made Malta a central hub of their operations, the tiny European nation’s regulators continue their effort to police the rampant non-compliant schemes which operate in its zone.

The financial markets watchdog in Malta, Malta Financial Services Authority (MFSA), on Wednesday issued a warning against an unauthorized broker, called Originalcrypto, that was previously flagged by Italy’s watchdog (CONSOB).

Discover iFX EXPO, Your Gateway to Asian Markets!

SolutionsCM Ltd, which operates via the website www.originalcrypto.com, runs a cryptocurrency brokerage service and solicits clients to trade on its platform. Though it has not made any mention of holding a license with the MFSA on its website, the warning from the MFSA could mean that the firm is directly soliciting clients with such false claims.

Suggested articles

Secretum - The SOLANA Messaging App For The Blockchain EraGo to article >>

The blacklisted brand was a recent discovery made by the Italian regulator and shared by MFSA. Both MFSA and CONSOB issue joint warning against unauthorized providers and advise investors to avoid any contact with the alleged entities. They also advise the public to visit their websites to check the list of authorized firms before making any investment decisions.

“Blockchain Island”

Malta, the European Union’s tiniest member, has recently earned the name “Blockchain Island,” claiming to be the first jurisdiction in the world to adopt blockchain regulations. The Mediterranean archipelago while aiming to boost its fortunes, has already attracted the two largest crypto exchanges, Binance and OKEx, and most recently American cryptocurrency exchange Bittrex, now opening offices in the rising crypto hub.

Earlier this year, the Maltese Parliament passed a law setting the framework for blockchain, cryptocurrency, and digital assets, becoming one of the world’s friendliest jurisdictions for a sector that’s caused concern among other regulators. The nation also hopes that this will serve to clean up its system and discourage scam entities from registering in Malta.

At the same time, the MFSA tightened margin requirements and increased capital requirements on FX and CFDs for licensed firms. This was an attempt by the MFSA to match other global regulatory bodies as far as regulations and requirements are concerned.

Got a news tip? Let Us Know