The global pandemic of 2020 had affected many individuals’ fortunes, with stocks and investment options going down, and has left many on the lookout for quick profit-making investments. This has been touted as the driving force behind the cryptocurrency industry’s growth. Many individuals, including large corporations, have pursued digital assets like Bitcoin and Ethereum to maximize profits in a turbulent economic year.
However, the desperation has led to the increase of several frauds of all natures in a bid to exploit the desperation of these individuals. Portuguese financial regulators, Comissão do Mercado de Valores Mobillários (CMVM) is the latest financial regulatory body to warn its citizen about unlicensed investment platforms that are likely to exploit traders of their earnings.
The product offerings of IQCent and Raceoption are unrealistic
The CMVM had previously issued warnings towards crypto brokers and forex traders who are offering risky products to financial traders, as the body feels like the offerings are unrealistic. The latest warnings issued by the regulatory body now is towards IQCent and Raceoption, both brands owned by Makerun Corp, an unregistered financial trading service firm operating in the country.
CMVM feels that the unregulated nature of these organizations’ investment products only implies that investors can lose it all at a glance. The products offering of these dark investment platforms has been investigated by CMVM, who have now concluded to blacklisting them and de-registering their services.
However, with many traders still going through the backdoor to trading with them, the financial regulator has now issued a warning to the general public about the investment platforms. Both firms’ operations in the country have been shut down because there is a requirement to get a local license, which both IQCent and Raceoption have flawed.
Portugal is not the only country flagging the firms
The new reports confirm that Portugal is not the only country flagging many of these investments outfits looking for investors to devour. The operations of several unregulated investments option have been called into question by many who feel that the juicy return on investments promised is the only reason behind the flocking of these options by individuals.
The CMVM has continued to renew its effort to protect its citizens from several of these investment scams by taking appropriate steps to ensure that their operations in the country are curtailed. For Example, Raceoption had once been sanctioned by French authorities who feel that the lack of a physical office means that investors can not locate them in the case of matter arising.
However, the CMVM has now obliged investors to invest money only in regulated bodies that can be traced when there is a need. The body had also warned its citizen about associating with many fraudulent investments that offer returns that sound too good to be true and implore them to associate with investment options that offer them realistic and healthy returns.