One of the biggest financial innovations of the last decades has been the creation of the crypto market. However, being a basically open market, there is always the possibility that malicious groups will cheat members of the crypto community. As is the case with two exchanges that lie about having authorization from the Maltese government to operate.
An open market for everyone
One of the most important effects that the creation of Bitcoin had years ago, was the birth of the crypto market. A financial system that connects to most of the Blockchain projects in the world. Placing dozens and dozens of tokens within easy reach of members of the crypto community, each with its own value and functionality.
Thus, an investor will be able to get in most cryptocurrency exchanges that challenge fiat money such as Bitcoin or Bitcoin Cash. Also virtual currencies based on smart contracts, such as Ethereum, or bridge currencies for international finance such as XRP.
All this, leaving it to be the forces of supply and demand that define the value of each of these cryptocurrencies.
Hence the importance of exchanges as meeting points for the different cryptocurrencies and stable currencies in the world. Well, it is in these exchange platforms, where the crypto world can define the true value of the multiple projects based on blockchains that exist today.
And also from there, the enormous importance of the security and reliability of these exchanges. Since, at the end of the day, cryptocurrency users entrust their assets to these companies. Being cases like that of the two exchanges denounced by the Maltese government, a blow to their credibility.
Exchanges denounced by the Maltese government
The Malta Financial Services Authority (MFSA) has issued an alert about two exchanges lying about having authorization from the Maltese government to operate in that country.
But this information was false, since they did not have a license or any other legal permission to operate.
The two exchanges would be COINMALEX and Crypto Foxtrades, which would have advertisements on their web pages where they refer to the alleged Maltese regulation of their operations. Issuing the MSFA a public warning about both, but especially against COINMALEX, which would be suspected is a scheme of “dubious nature”.
“The MFSA wishes to alert the public, in Malta and abroad, that Crypto Foxtrades is NOT a company registered in Malta nor licensed or otherwise authorized by the MFSA to provide the service of an exchange or other financial services that must be licensed. or otherwise authorized under Maltese law” It can be read in the alert issued about Crypto Foxtrades.
In this way, the Maltese government would be trying to prevent these two exchanges from attracting users under false regulatory promises. This reaffirms the responsibility that users have to investigate the exchanges with which we do business. And what makes this case our Today’s Data here at CryptoTrend.