Latvia Warns: Beware of Cryptocurrency Fraud Risks


Latvia’s Finance and Capital Markets Commission (FCMC) issued a warning against the risk of cryptocurrency fraud targeting users across various channels. There is such a commission in the country. However, the Latvian government does not currently have any regulations against the circulation of cryptocurrencies.

According to the statement made by the commission, it was stated that the fraudsters made their crypto money investment advertisements using the names of well-known people and companies on the internet. These ads are mostly used as fraudulent tools and offer high interest rates for short-term investments to attract users. Unlike cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), cryptocurrencies that are not traded on stock exchanges have no value, according to the statement. Also, these assets are over priced and not genuine.

It is known that the European Union is working on various regulations regarding the effectiveness of cryptocurrencies. In Latvia, this is not the case for now. According to the statement of the Finance and Capital Markets Commission, announcing to other people through victims is among other purposes of fraudsters.

Stating that investors should be careful against such risks, the commission recommended that the platforms to be used should be carefully researched before investments. It was shared that even crypto currencies that did not exist in fact were sold to the victims in order to force users to invest in clone sites established for fraudulent purposes.

“Crypto money fraud should be audited”

In the FCMC’s statement, the Latvian government’s indifference to crypto money investments was also mentioned. The Commission also stated that such an approach gives flexibility to fraudsters in carrying out their activities. Nevertheless, the government controls some cryptocurrency investment tools for CDFs, which are referred to as difference contracts in the country. Time will tell whether this statement by the Finance and Capital Markets Commission will push the Latvian government to take an official step against the cryptocurrency sector.


Please enter your comment!
Please enter your name here