Just recently, the officials from Latvia have made a shocking revelation to the public. The Financial and Capital Market Commission has revealed the possibilities of fraudulent transactions. The Commission has revealed that there might be some attempts made to commit fraud in the local cryptocurrency market.
The Financial and Capital Market Commission (FCMC) recently released a statement around these possibilities. They have asked the investors to be extra careful and vigilant while making transactions or investments. The FCMC added that the current cryptocurrency and blockchain platform is not an ideal trading channel.
The reason behind the Latvian FCMC releasing this statement is because the crypto-blockchain industry at present lacks the regulatory infrastructure. As per the FCMC, regulations are important for any ecosystem to survive in any market.
However, the cryptocurrency industry lacks the regulatory infrastructure, which is why it can never be accepted by the capital and financial markets.
(Advertisement)
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!
Majority of the cryptocurrency platforms in Latvia itself are unregulated so the cryptocurrency issuance and circulation take place in an un-regulatory environment. The Latvian authorities confirmed that there only a few crypto-based contracts and investment services, which require FCMC licensing.
The FCMC has recently gone public, sharing the details of many domestic cryptocurrency projects that have ‘Fraud’ written all over them. In one of their statements, the FCMC talked thoroughly about one particular scam that is currently at large in the cryptocurrency industry.
The regulator (FCMC) revealed that at present, many scammers are posting/circulating fraudulent advertisements. In these advertisements, the scammers impersonate either as a popular personality or a well renowned licensed company.
These advertisements are then sent over to the victims in an email where the person is asked to click the provided link. If clicked, the investors are directed to a fake website or a portal where they get asked for their mobile number and personal information.
Apart from the email scams, the investors are also contacted by the scammers via phone. If the scammers succeed in convincing the investors, then they can scam away the customers’ money. All of these fraudulent activities are caused due to the fraudulent schemes that scammers have put in place.
