The Malta Financial Services Authority, or MFSA, has issued an alert on March 25 about two crypto exchanges that do not have licenses to operate, nor are they regulated in the country.

COINMALEX and Crypto Foxtrades are the exchanges that the country’s financial watchdog alluded to in the statement, as both companies claimed on their websites that they had the necessary regulations and licenses to operate.

Crypto Foxtrades claimed that they had the “Category 3 Investment Services” provider from the Maltese authorities to operate.

The MFSA clarified the following about Crypto Foxtrades in the public warning:

“The MFSA wishes to alert the public, in Malta and abroad, that Crypto Foxtrades is NOT a Maltese registered Company NOR licenced or otherwise authorised by the MFSA to provide the service of an exchange or other financial services which are required to be licenced or otherwise authorised under Maltese law.”

Scheme of “dubious nature”

As for COINMALEX, the financial watchdog adds that the information they have about this crypto exchange suggests that it is a scheme of “dubious nature” and that it could carry a high risk of losing money.

On their official website, COINMALEX claims to offer trust assets management of the highest quality through cryptocurrency trading.

The MFSA advises the following:

“The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity.”

Recent warnings issued by the MFSA

The public warning comes after Malta’s financial watchdog said on February 21 that the major cryptocurrency exchange, Binance, has never been licensed to operate in the country.

The following day, Binance’s CEO Changpeng Zhao commented on the MFSA’s statement via Twitter, which he described as “old news” and stated that Binance “has a number of regulated entities around the world, either operated by our partners or by Binance.com directly.”

However, speaking to Cointelegraph, Malta’s Junior Minister for Financial Services and Digital Economy, BartoloClayton, clarified the position that the watchdog has regarding crypto in the country despite the public warning on Binance:

“This therefore DOES NOT mean that the Government has in some way or another introduced a harsher or more stringent stance towards cryptos, but merely an authority stating facts. On the contrary, the Government of Malta is committed to consolidate blockchain together with other niche sectors.”