Financial Market Authority (FMA), the Australian national watchdog authority on cryptocurrency, has warned the citizens and cryptocurrency investors about the locally operating Bitcoin trading firm Bitcoin Traders, on account of the illegal status of the scheme.
The warning was issued on the account that the firm Bitcoin Traders has not been able to attain a banking license from the relevant authorities and therefore falls under illegal cryptocurrency scheme in operation.
The warning comes while Bitcoin Traders continues to operate in the country deeming it an automated multi-level marketing scheme or an affiliate marketing scheme that allows the firm to make profits.
FMA is of the view that the company has not fulfilled its legal obligations to deal in cryptocurrency, therefore, falls under the illegal operations category making the investments very susceptible to scamming and possible loss in the future in case of legal action.
Bitcoin Traders, on the other hand, boast that the “automated software” handles all the trading for the company, therefore the margin for error is very low.
Too good to be true?
The company is boasting that the automated software is over ninety-nine percent (99.4%) accurate therefore it takes out the long hours people have to spend reading on trading articles and other information.
The company further boasts that a user can make as much as fourteen hundred and sixty dollars ($1460) of profits in just 2 minutes of trading every day.
The claim gets even more suspicious when the company is not charging any consultancy or software fee, however, maintains a multi-level-marketing type of structure to make profits.
FMA is hitting all the newbies and unlicensed companies hard as another firm Universe Markets has just been on the watchlist and warned about two days ago.