MFSA issues warnings against Coinmalex and Crypto Foxtrades

The financial watchdog has issued a warning against two entities both of which have an internet presence and claim to be licensed.

In two separate warnings, the Malta Financial Services Authority warned against Coinmalex, an entity that purports to operate from an address in Malta and claims to “offer trust assets management of the highest quality on the basis of profitable CryptoCurrency trading through Crypto exchanges”.

The second entity the MFSA warned about is Crypto Foxtrades which has an internet presence and claims to be “a licensed and regulated trading platform that serves over 500,000 customers globally”. The entity also purports to be a “licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority”.

The MFSA warned that both Coinmalex and Crypto Foxtrades were not a Maltese registered company nor were they licensed or otherwise authorized to provide the service of an exchange or other financial services which required to be licensed or otherwise under Maltese law.

The public should refrain from undertaking any business or transactions with both entities. On Coinmalex, the MFSA suggested that it was likely a scheme of dubious nature with a high risk of loss of money.

The MFSA reminded consumers of financial services not to enter any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorized to provide such services by the MFSA or other reputable financial watchdogs. Investors should be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media, the financial watchdog said.