A warning was issued on December 5th by Malta’s Financial Services Authority (MFSA) working in conjunction with Italy, requesting that www.originalcrypto.com cease operations. The exchange is unlicensed while serving the domestic market which is a direct violation of art. 18 of the Italian Legislative Decree No. 58/1998.
The OriginalCrypto exchange is not authorized to offer “investment services and activities.” The platforms owner, SolutionsCM Ltd, is now under investigation by both countries, each other them issuing a warning towards the exchange.
“The Commissione Nazionale per le Società e la Borsa (CONSOB) has ordered the following companies to cease infringement of art. 18 of the Italian Legislative Decree No. 58/1998, consisting of the provision of unauthorised investment services and activities to the Italian public performed by SolutionsCM Ltd. via the www.originalcrypto.com website.”
Why this is important for Malta.
OriginalCrypto was labeled as a potential scam back in February when ScamBitcoin wrote OriginalCrypto had “engineered a clever marketing approach to promote their illicit investment services to consumers across the world.”
While the crackdown on OriginalBitcoin itself may not be that big of a deal, it’s important that Malta demonstrates their intent and ability to shut down or regulate illegal or scam activity. Malta aims to become what they call ‘blockchain island’ and have already attracted major industry players with government endorsed schemes including Binance and Huobi.