Malta Finance Regulator Warns Against Crypto Margin Trading Site

The MFSA issued a warning against Stocksbtc, denying claims that the startup is registered with the regulator and based in Malta.

AccessTimeIconApr 5, 2018 at 4:40 p.m. UTC
Updated Aug 18, 2021 at 8:42 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Malta's government has released a new warning about a cryptocurrency margin trading site.

StocksBTC claims on its website to be registered with the agency and to have a physical location in the country. That's not true, according to the Malta Financial Services Authority (MFSA), prompting it to issue a warning Thursday to investors about the service.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • In addition, the MFSA noted that StocksBTC "appears to be offering investment and/or other financial services to consumers." As part of its warning, the regulator noted that Stocksbtc is not "licensed or otherwise authorised by the MFSA to provide any type of financial services which are required to be licensed or otherwise authorised under Maltese law."

    The statement continued:

    "The MFSA strongly advises investors and consumers of financial services that prior to making any investment or entering into any financial services transaction they should ascertain that the entity with whom the investment or transaction is being made is authorised to provide such services by the MFSA or another financial services regulatory authority as applicable."

    The MFSA has taken a largely cautious approach to the cryptocurrency space to date, and today's warning is the first related to cryptocurrency since it put out a general advisory on last July.

    The warning comes just over two months after the MFSA released feedback for its new cryptocurrency rulebook, which was released at the end of January, as previously reported. Even still, crypto businesses are eyeing the country for relocation – late last month, cryptocurrency exchange Binance announced that it would open an office in Malta.

    Editor's note: This article has been updated to reflect the new rulebook has been released. 

    Malta flag image via Alexandros Michailidis / Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.