Maltese regulator warns of crypto firm World Smart Investments
The Malta Financial Services Authority is drawing the attention of local investors to a possible fraudulent scheme or financial scam operating under the brand name “World Smart Investments”.
The MFSA said that this shady broker is operating without proper authorisation and is likely to be an international “get-rich-quick” scam. The watchdog added that contrary to claims on its websites, World Smart Investments doesn’t represent a Maltese entity. Its domain https://worldsmartinvestments.com is also not known to the MFSA or authorised to provide any type of financial service in or from Malta, including the provision of investment services. Further, it described the firm behind them as likely a scheme of dubious nature with a high risk of loss of money.
“The MFSA wishes to alert the public that World Smart Investments is NEITHER a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned company on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the Laws of Malta or the Virtual Financial Assets Act, Chapter 590 of the Laws of Malta,” the regulator states.
MFSA had a peak on its warning list
Following in the footsteps of several European regulators, the Malta Financial Services Authority has revamped its regulatory landscape over the last two years. The changes hit almost all investment services providers, including applicants for Category 2 or Category 3 licenses which allow firms to offer contracts for differences (CFDs) and spot forex contracts under the MiFID regime.
Furthermore, the Maltese financial watchdog emphasized that operating a crypto-related business in the country requires an MFSA license under the Virtual Financial Assets Act of 2018. As such, the MFSA reminded the public that due diligence is important.
To facilitate transparency, the MFSA maintains an official website where the list of authorized entities can be found. This list includes all the entities that have been granted authorization by the regulator to provide financial services in Malta. By referring to this list, investors can verify the authorization status of a particular entity and ensure that it operates within the regulatory framework established by the MFSA.