The Financial Services and Markets Authority (FSMA) of Belgium has issued an official statement that warns traders to stay away from 7 new cryptocurrency trading platforms, which it deems to be “suspicious” and most likely all scams. This warning is based on the wide range of new complaints the financial watchdog has been gathering from traders in Belgium who have fallen victim to these crypto trading companies.
With this new addition, the FSMA has now updated its list of suspicious cryptocurrency trading platforms to 120 websites – all of which it concluded to be frauds.
If you have been scammed by a forex, cryptocurrency or binary options broker, read our broker complaints section on what to do next.
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The 7 cryptocurrency trading websites that have been identified by the FSMA are the following:
How Do Crypto Scams Work?
As in most cases of crypto scams, the websites listed above by FSMA try to lure people in by claiming to be easy, fast and safe. They assure unknowing investors that no prior knowledge in cryptocurrency trading is needed and that they too can make “thousands of dollars” by merely a click of a button.
Of course, these claims are not only entirely misleading, but completely false. All trading comes with some degree of risk and you should never begin investing in a crypto trading software or broker before you fully understand how retail trading works and all the risks involved.
If you have ever traded with a licensed and regulated broker, you will know that you will always be required to fill in a list of trading questions to prove whether or not you are ready to start trading with real money. Regulated brokers also never claim to make investors millionaires – fast or give any type of bonuses. These are all signs that the broker or software you are about to invest in is a scam.
Check out our list of the best regulated brokers here.
It is important to note here that this list does not consist of all the crypto trading websites that are deemed as scams. This is the FSMA’s most recent addition of crypto trading scams. Their full list consists of 120 websites.
Don’t waste any more time on crypto trading scams, and check out our personal list of the top forex, crypto and CFD brokers for your country.