Financial regulators are continually making sure that exchanges and related platforms can provide a safe ecosystem for fair trading activity. That is why the Financial Services and Markets Authority (FSMA) of Belgium has written the name of XTB-Markets on its crypto warning list. The domain of the page is www.xtb-markets.com.
XTB Markets is a European brokerage tool for investment alternatives, with headquarters in London, England since 2003. The company has European and international private investors and also local wealth management structures as its primary clients. According to its website, XTB Markets monitors and supports investors in the crypto field.
Suspicious Trading Platforms
After the FSMA released the piece of news, it now has a total of 121 firms on its warning list. The reasons behind the blacklisting, per the watchdog’s web page, are that the FSMA has deemed the trading ecosystem as suspicious, and is therefore persuading potential investors and traders not to respond if they get any offers from XTB Markets.
According to the FSMA, the company’s modus operandi is similar to other scams that have recently occurred in the crypto space. They claim that their investment offers are safe, lucrative, and they don’t require much effort. By telling potential investors that they don’t need to be experts in crypto assets to be successful, they try to earn their trust.
The platform, per the FSMA, tries to persuade potential clients by saying to them that they have specialists that will serve as advisors at the time of managing their investments. The page claims that the customer can take out its funds at any moment, or that there are guarantees involved. The result is not unlike other suspicious platforms: victims can’t recover their funds.
Acting as a genuine regulator, the FSMA maintains and updates a list of potentially dangerous platforms and sites to protect investors against scams or frauds. The list first came up in February 2018 and had 20 names on it. Now, it has 121 and counting, as the FSMA provides its contribution in the fight against criminal financial activity.
Feeding On User Complains
The watchdog feeds from complains made by users to update its list. These potential clients have responded to offers made by these possibly fraudulent financial schemes, entities that don’t often operate legally in the country.
The last update to the list was back in April. At the time, Belgium’s Financial Services and Markets Authority reportedly included seven names of suspicious companies offering their services in the crypto space.
In Cyprus, the financial regulator (Cyprus Securities and Exchange Commission, or CySEC) also listed seven sites that were unregulated and were offering suspicious crypto schemes and financial “opportunities” to users. Germany’s BaFin also warned two trading platforms recently.