Suspected Crypto Ponzi Scheme Has No License in Malta, Regulator Warns
Emirate Coin Tech makes false claims about its legal status, says Malta’s Financial Services Authority.
“Built on the power of the Middle East”
In a statement July 23, the Malta Financial Services Authority (MFSA) warned residents they should avoid Emirate Coin Tech, which offers cryptocurrency investment options with alleged weekly payouts of up to 25%.
“The MFSA wishes to alert the public, in Malta and abroad, that Emirate Coin Tech is NOT a Maltese registered Company NOR licenced or otherwise authorised by the MFSA to provide any investment, crypto currency or other financial services which are required to be licenced or otherwise authorised under Maltese law,” the statement reads.
Emirate Coin Tech claims to offer various investment tools via a method reminiscent of a ponzi scheme.
The platform’s website contains dubious information written in curiously-worded English, its slogan stating it is “built on the power of the Middle East.”
“Go straight away and make a deposit into the account information provided in the deposit section of your account,” part of the website’s instructions to new users states.
Blockchain island Malta
Malta is a well-known hub for cryptocurrency and blockchain businesses, having purposely created a relaxed regulatory framework which fosters innovation under the Blockchain Island concept.
Many of the industry’s best-known names have set up bases in the country, including exchange Binance.
The MFSA takes an active role in the domestic market, in March this year appointing a blockchain firm to monitor cryptocurrency participants’ compliance with its rules.