It has come to our attention that the entity known as Crypto Service Authority is presenting itself as a self-regulatory organization for cryptocurrency professionals, lawyers, and consultants. They claim to offer a comprehensive suite of services, including recognizing brokers, providing consultations, and resolving disputes. However, the Crypto Service Authority is not an authority; it’s a fake. Do not invest in schemes claiming to be regulated by this fake.
Another Fake Regulator For Scammers
The Crypto Service Authority holds no legitimate power to oversee or regulate crypto companies. Furthermore, this fake regulator is not recognized within the established crypto community. One of the primary intentions behind this pseudo-regulator seems to be to lend a veneer of legitimacy to questionable entities, such as Tools4Deals (read our warning here).
While the Crypto Service Authority boasts an educational system and an impressive list of purported members, including reputed brokers like eToro, Exness, Capital.com, and ThinkMarkets, they also list questionable entities against which there are regulatory warnings.
Additionally, their claims of having a compensation fund that promises payouts of up to €100,000 in case of broker-related issues are bullshit. The overall presentation and operations of the Crypto Service Authority bear a concerning resemblance to the Financial Commission (website), an established self-regulatory “external dispute resolution” entity.
Why Relying on Regulated Brokers and Exchanges is Crucial:
The crypto environment is notoriously volatile and high-risk. With the potential for high rewards comes the lure for nefarious actors looking to take advantage of unsuspecting investors. It is of paramount importance for investors to only engage with brokers and exchanges that are officially regulated by recognized authorities. These regulated entities are bound by laws and standards that ensure the safety and integrity of your investments. Falling prey to fake regulators or unregulated entities can lead to significant financial losses and potential legal complications. Always do your due diligence, research extensively, and ensure that you are entrusting your funds to legitimate and regulated organizations, especially in the dynamic crypto landscape.
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If you have any information about fake regulators or scammers, please let us know via our whistleblower system, Whistle42.
