Latvian regulators warn public about cryptocurrency fraud

in news •  4 years ago 

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Latvia's Financial and Capital Market Commission has identified suspect transactions and attempted fraud in the domestic cryptocurrency space.

In an official warning published on Monday, the FCMC urged investors to "be particularly vigilant, as cryptocurrencies operate in an infrastructure that is currently characterized by lower regulation than in the financial and capital markets."

Within Latvia, the issuance and circulation of cryptocurrencies are mostly unregulated, with exceptions for certain types of investment services and contracts involving crypto that require a license from the FCMC.

The regulator has shared several details of the "signs of fraud" it has identified within the domestic cryptocurrency market. Online crypto adverts circulated by scammers may use "names and images of well-known individuals or licensed companies," the FCMC noted. These ads often direct investors to slick websites where they are asked to provide their phone number. Many of the attempts to persuade investors to "invest" in fraudulent schemes happen over a phone call, the regulator said.

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