Make no mistake. FinTelegram is a big fan of cryptocurrencies. In our opinion, the inflated FIAT monetary system has failed, got out of control, and is doomed. While cryptocurrencies are native to the emerging CyberFinance era, FIAT has little left. But we don’t want to discuss monetary policy here but the dark side of crypto. Unfortunately, scammers use crypto to rip off consumers with highly scaleable schemes; crypto is a crime facilitator. The UK FCA has issued more than 100 warnings since mid-December 2021.
Traditional criminal schemes, such as drug or arms trafficking, have primarily used cash that was costly to launder. In contrast, cybercrime organizations increasingly rely on cryptocurrencies, which are easier to launder and also make the scams highly scalable. It is no exaggeration to say that crypto has unleashed the cybercrime scene and taken it to another level. Traditional crime looks like kindergarten in comparison.
FinTelegram started its Crypto Warning List a few weeks ago and is trying to list regulators’ warnings there. By far, the most aggressive regulator in the fight against crypto is the UK Financial Conduct Authority (FCA), which has issued warnings against more than illegal crypto ventures and scams since mid-December 2021. Our analysis shows that 99.9% of all crypto websites fall into this category.
Investors should only work with regulated and licensed companies in the high-risk cryptocurrency segment. Even among the regulated crypto companies, there are many dubious providers. Especially with regulated providers from Estonia, we advise the utmost caution.
If you have any information about crypto providers, please let us know via our whistleblower system, Whistle42.
