The Austrian Financial Market Authority (FMA) has issued a warning against Bitcoin Trader. A report unveiled this news earlier today. Reportedly, the watchdog warned Austrians that the platform does not have a permit to carry out bank transactions.
In the report, FMA noted,
Bitcoin Trader is not entitled to carry out banking transactions in Austria that require a license.
Per the Bitcoin Trader’s site,
It is “a group dedicated exclusively to people who have bounced off Bitcoin on top of the insane profits, tacitly accumulating a fortune”.
The automated platform runs on its own technology. It promises investors at least $1,460 per day. Purportedly, investors would only need to work for an average of 20 minutes each day to earn this amount. The site goes on to detail that some of its investors have earned up to a million in a span of 61 days.
A Multi-level Marketing Scheme for Trading Crypto
Bitcoin Trader does not charge any fees or commissions for completing trades. However, the platform makes money through a multi-level marketing scheme.
According to the platform’s website,
This is similar to MLM, affiliate marketing or anything else. The software is based on an innovative algorithm that wins trades with an accuracy of 99.4%,
The site notes that the founders of the platform are two university students, namely Jeff and Mike. However, it does not disclose further details about the founders. On top of this, the site does not even mention the university’s name.
In its statement, the FMA added that,
…provided that said person has given cause for such action and informing the general public is deemed necessary and reasonable with regard to possible disadvantages of the person concerned,
This news comes as Austria’s FMA continues its war on fraudulent crypto firms. In the past month, the agency published a statement, warning against AGM Invest. According to the watchdog, AGM Invest is a clone firm of AGM Financial Services Ltd.
Cautioning against clones, FMA noted,
Be aware that the scammers may give out other false details or mix these with some correct details of the appointed representative firm,
Earlier this month, the agency flagged another fraudulent firm known as Universe Markets. The firm is also known as Whitesquare Trading Ltd. Per FMA, it does not have the necessary licenses to conduct banking transactions in the country.
Do you think FMA’s stern measures in regulating the Austrian crypto market has helped minimize crypto crime in the country? Let us know in the comments below.