Austria’s FMA Warns Against Unlicensed Bitcoin Investment Scheme
The Austrian Financial Market Authority (FMA), the nation’s financial watchdog, has warned investors to be wary of Bitcoin Trader, an unlicensed bitcoin investment scheme that promises investors huge profits of $1,460, according to reports on July 10, 2019.
FMA Warn Investors
Per sources close to the matter, Austria’s financial watchdog, the FMA, has made it clear to potential investors of Bitcoin Trader that the platform is yet to obtain a banking license and as such, the project is an illegal cryptocurrency investment scheme.
Reportedly, Bitcoin Trader is a crypto investment platform that promises investors a massive return on investment every day.
The team behind Bitcoin Trader claim the platform is powered by their proprietary automated trading system which has a 99.44 percent accuracy, ensuring that traders rake in a guaranteed $1,460 per day with only 20 minutes of trading.
The FMA said:
“Bitcoin Trader is not allowed to conduct banking transactions that require a license. As such, soliciting funds from other parties for the purpose of management is illegal pursuant to Article 1 Para. 1 no. 1 first case BWG,”
Too Good to be True
Interestingly, the operators of Bitcoin Trader claim to be a group of bitcoin big whales dedicated exclusively to “investors who have bounced off bitcoin on top of the crazy profits, tacitly accumulating a fortune.”
While Bitcoin Trader charges users zero fees or commissions for helping them to execute trades, the team has however put in place a multi-level marketing system that generates money for it.
According to the Bitcoin Trader website, the platform was created by two university students simply known as Jeff and Mike.
“This is just like MLM, affiliate marketing or anything or anything else. The software is powered by an innovative algorithm that wins trades with an unbeatable 99.4 percent,” declared Bitcoin Trader.
Though Austria has exhibited a somewhat liberal stance towards cryptos and blockchain technology, the country’s authorities have been working hard to formulate policies that will govern its cryptospace and curb the activities of bad actors.
Earlier in September 2018, reports emerged that Austria was looking to auction about $1.35 billion worth of government bonds on the Ethereum smart contracts blockchain.
More recently, in April 2019, BTCManager informed that the Austrian government is putting plans in top gear to create a regulatory sandbox for its fintech ecosystem.