Crypto Foxtrades, COINMALEX not authorized in Malta: regulator

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The chief financial regulator of Malta has issued a public warning regarding companies falsely claiming to be licensed to operate in the country, in the latest alert of its kind to be aimed at investors.

Following a series of complaints about the firms claiming to be licensed, the Malta Financial Services Authority (MFSA) said Crypto Foxtrades and COINMALEX were not “licensed, registered or domiciled” in Malta, despite the firms’ claims to the contrary.

The regulator was unequivocal in its message to investors, warning that the firms were not authorized to conduct digital currency business in Malta, despite the claims made on their website and in their marketing materials.

“The MFSA wishes to alert the public, in Malta and abroad, that Crypto Foxtrades is NOT a Maltese registered Company NOR licenced or otherwise authorised by the MFSA to provide the service of an exchange or other financial services which are required to be licenced or otherwise authorised under Maltese law.”

A similarly worded statement was published regarding COINMALEX, with the regulator keen to inform investors that neither firm had the authorizations they claimed to operate within Malta.

On its website, Crypto Foxtrades still claims to be “licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority.” It also bears a document purporting to be from the Malta Business Registry. However, the regulator has cast doubt as to the authenticity of the document.

In reality, the MFSA claims that Crypto Foxtrades is not regulated or licensed at all, suggesting the claims made on the website are false.

The warnings are only the latest to come from the regulator, which has been taking an active approach to tackling crypto scams and fraudulent companies since 2018. The latest notice should serve as a reminder to investors to be wary of the claims made by crypto companies, and to do their due diligence before becoming involved with any crypto firm.

Neither firm has yet responded to requests for comment.

A list of currently regulated entities is available on the Malta Financial Services Authority website.