Latvia’s financial regulator warns crypto investors about scammers

The Financial and Capital Market Commission of Latvia (FCMC) urged local investors to be vigilant amid possible cryptocurrency scams. is stated in the regulator’s press release.

The FCMC reminded that Latvia has no full regulatory framework for digital assets. This leaves investors unprotected against wrongdoing and undermines public trust in cryptocurrencies, officials say.

The regulator cited several signs of fraud observed on the domestic market, including advertising that uses celebrity endorsements or the names of licensed firms, as well as the sale of non-existent cryptocurrency products.

“Some scammers offer investors consumer credit to invest in cryptocurrency,” the commission noted.

The FCMC advised users not to fall for enticing offers, particularly when project representatives demand a quick decision. To minimise risks, investors were advised to turn to a bank or a licensed brokerage company.

Earlier reports of fraudulent schemes that employ aggressive tactics and celebrity endorsements, reported to the Belgian Financial Services and Markets Authority. According to the regulator, victims lost at least €10 million.

Subscribe to ForkLog’s channel on YouTube!