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THE WORLD OF CRYPTOCURRENCY AT YOUR FINGERTIPS

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Australia’s Top Finance Regulator Blacklists More Crypto Brokers as New Regulation Kicks In

Australia’s Financial Markets Authority has issued warnings to residents in the country to be cautious when dealing with Raxtrade/ROI STOCK LIMITED, a crypto and FX broker. According to the FMA, the broker is not licensed to offer investment advice in Australia.

Details of the FMA Warning

The financial watchdog warned Australians not to deposit their funds or transfer their funds to these entities since there was inherent risk involved. In past years, the authority’s warnings have focused on forex trading. However, the focus has increasingly turned to crypto as the number of unregulated firms in the space has grown.

In its warning, the FMA focuses on the growing number of investment schemes based on digital currencies. For a company to operate within the crypto space in Australia, it has to acquire a license, according to the nation’s new AML regulations. While derivatives referencing crypto do not fall under the regulation, they are still subject to current restrictions by the ESMA as well as any future policy proposal by the FMA on their sale to retail investors.

The FMA has been working to identify and blacklist any person or entity that offers its services to Australian residents without a license. However, the FMA has noted that some of these firms are based abroad and they only become aware of them once a local has problems when dealing with them.

Investor warnings issued by the FMA are meant to alert the public of any potential fraudulent schemes, unauthorized operators, and possible scams. Their system is similar to what is used by other financial regulators globally.

The latest warning is meant to be one of the measures to tamp down the effect of unauthorized and fraudulent schemes in the crypto space. By providing the public with more information, it ensures that scammers are less likely to succeed.

However, when investing in any potential crypto scheme, you should note that just because it has not been blacklisted does not mean it is genuine. Always conduct due diligence to ensure the platform you use is properly registered and regulated. It helps to safeguard your investment in case anything goes wrong.

 

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