In addition, the MGA is issuing the Commercial Communications Guidelines as part of the watchdog’s aim of placing player protection and responsible gaming on top of its regulatory agenda.

The authority believes that the guidelines can provide practical guidance to any person offering licensable games and to people who collaborate in any way or provide any service, including any marketing or promotional service.  

The guidelines will serve also as guidance on the interpretation of the regulations and should not be considered as a substitute for the relevant laws and regulations. 

In fact, they reflect the MGA’s intended effect of the regulations but neither constitute new rules nor bind the MGA or the committee on the manner in which they will decide upon any commercial communication complaint, the press release says.

The post MGA sets up commercial communication committee, adds guidelines first appeared on The Malta Business Weekly.

“As part of its responsibility toward safeguarding consumer protection, the MFSA is providing useful and easy-to-read information on cryptocurrency investments,” the watchdog says in the public note they published on their website. In addition to numerous warnings the authority has already issued, it is committed to “further educating the public on how to identify and avoid scams, as well as the actions recommended in the event that one encounters a scheme of a dubious nature within the crypto asset sector,” the public note adds.

The MFSA says that scams are highly likely to be advertised online, with the use of “clickbait titles” to attract unsuspicious investors. The authority adds that some websites will ask for personal details, which can often be followed up by a phone pitch by a “friendly and supposedly expert salesperson whose aim is to convince victims to invest money in their scheme,” the MFSA says.

The authority says that the most common types of cryptocurrency scams include fake initial coin offerings (ICOs) and crowdfunding ventures promising high yields in short term; eventually leading to platforms closing down and operators disappearing in an impromptu manner with the investor’s money. The watchdog also warns about fake exchange platforms and fake crypto wallet applications.

The MFSA has compiled the following 11-item checklist to help investors establish whether a proposed investment scheme can be trusted or not.

• Unrealistically high rates of return which are usually higher than the market average;
• Easy withdrawals which may be made at “anytime”;
• Promises that any funds deposited are 100% guaranteed;
• The business being unregulated;
• Lack of documentation or the use of documentation which is copied from a legitimate business;
• Aggressive selling techniques which put pressure and rush you to secure a sale;
• The absence of physical local offices;
• Contradiction between documents and spoken information;
• Not answering and avoiding hard questions;
• Lack of information being provided on the website, or within the whitepaper;
• The use of buzz words such as “no risks”, “gains guaranteed, become a billionaire”, “free services just register”.

“When investing, consumers of financial services are advised to proceed with caution and always make the necessary find-outs about the company,” the watchdog says. MFSA encourages users to check whether the company is regulated, which can be verified in the authority’s online Financial Services Register. When in doubt, consumers are welcome to get in touch with the MFSA via email or through their website.

“Consumers are also urged not to be fooled by the sensation of trust which these illegitimate platforms so often allude to. More importantly, one should take heed of the advice: if it seems too good to be true, it probably is,” the MFSA concludes.

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