Financial Services and Markets Authority (FSMA) of Belgium recently exposed a crypto company that claimed to have links with Bernard Arnault, the owner of global fashion brand Louis Vuitton.
Cracking down on crypto frauds
According to the Belgian FSMA, it has been receiving a growing number of complaints against cryptocurrency companies involved in frauds. Crypto investors are getting anxious about their funds invested in these companies. In an effort to crack down on these activities, the regulator investigated and exposed the frauds of Abesix Belgiqu.
The cryptocurrency company was operated in the country without proper authorizations. Last month, a Belgian newspaper reported that the company was co-founded by the world’s third-richest man Bernard Arnault. He is the owner of Louis Vuitton, a well-acclaimed international fashion brand. The company was also said to be connected with a younger Brussels-based entrepreneur, Emmanuel Wouters.
The regulators revealed that Arnault is not connected with the crypto company in any way. He is neither a partner nor a founder of the brand. After reporting his association with Abesix, the newspaper posted an update suggesting that Arnault has denied any association with the company. The publication also said that even Wouters is not connected with the company or any of its activities.
Abesix’s crypto activities
Abesix allowed users to trade six prominent digital currencies in the market, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple and Dogecoin. The company offered users online financial planning services as well.
The regulator posted a statement saying,
“As ABESIX is allegedly also offering virtual currencies, the FSMA emphasizes that, at present, there is no financial supervision or oversight on virtual money. For that reason, and because such products are risky, both the FSMA and the NBB advise – and have been doing so since 2014 – taking extra care with them (https://www.fsma.be/en/news/be-careful-virtual-money-such-bitcoin).”
The regulator is now busy in busting online crypto schemes that are violating the norms and defrauding investors. Like Abesix, companies may use the names or images of popular personalities and misrepresent facts about their brand and their activities. The regulator cannot offer any form of protection to users who are engaging in financial activities with such unauthorized firms. Therefore, it urged investors to use only those platforms and entities that are registered with the regulator.
The users will also be benefitted if they check the Belgium FSMA warning list which includes a number of cryptocurrency firms that have been offering unauthorized financial and investment services to the users.