Financial authorities across the world are always on high alert with regards to fraudulent and unregistered firms trading within their jurisdictions. People lose money to these kinds of firms, and regulatory authorities have to protect people from falling victim.
In Austria, two companies have been flagged and added to the list of firms traders and investors are warned about. The Austrian Financial Markets Authority (FMA) has issued a warning against Zuitex and OMC Markets (Personal Found Ltd.) which have been conducting business as forex exchange companies.
According to the warnings issued by the FMA, these two firms do not have the authority to perform any banking transactions that require a firm to be licensed in Austria. Due to this reason, neither firm is permitted to engage in commercial trading of any sort.
Zuitex has been offering Austrian traders a number of options including forex trading, trading of raw materials, crypto trading and shares. The unlicensed firm’s website claims that the company is based in Switzerland.
OMC Markets claims to be based in Bulgaria, and the firm has been offering clients forex trading options, indices, stocks, and commodities.
Crypto and FX scams
The crypto and forex industries struggle with scams and fraudulent activity. People have lost significant amounts of money to firms and trading platforms which purport to be leaders in these industries. This generates a negative perception among the general public, which affects the mainstream adoption of these industries, especially the crypto industry.
This year, several firms have flagged by different regulatory authorities across the world as regulators step up their efforts to counter illicit activity. Regulators have also been developing new policies and rules which are meant to flush out any firms and platforms which are not registered or do not comply with existing regulations.
In some countries, regulators have resorted to imposing outright bans on cryptocurrency because of the mistrust they have towards these digital assets. In the United States, several exchanges have been banned from offering their services to American citizens because the exchanges have been flagged by regulators in the country for various reasons.
The profitable nature of forex and crypto trading attracts a lot of people to these industries, and so scammers target these industries. It is vital that people who want to get into forex and crypto trading arm themselves with as much information as possible about the exchanges and firms they wish to consult before they engage in business.