Japan warns about crypto scams: Financial companies discuss new modus operandi

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TL;DR Breakdown

• JPX asks crypto investors to avoid trading with unverified companies.
• Japan could accept crypto trading soon.

As crypto trading grows, so do crypto scam methods that harm enthusiasts. Recently, the police authority in Japan talked about the latest modus operandi of crypto-scams involving well-known names in the virtual market.

According to reports from the company that offers financial services in the country, JPX, scammers use the prestige of great celebrities such as Michael Saylor or Elon Musk to deceive crypto fans. The thefts are perpetrated with the promise that if the person invests a certain amount of money in an Exchange or crypto, they will get a large compensation, which in the end is a farce.

Financial companies in Japan warn about crypto thefts


An announcement was issued from the JPX website talking about the new crypto thefts. According to the company in Japan, countless clandestine agencies take advantage of the lack of information from enthusiasts to steal them. Sometimes criminals use the credibility that Elon Musk, CEO of Tesla, has in the market to perpetuate the act.

This announcement comes after the company in Japan was alerted to alleged crypto companies working online. Even JPX points out that some firms support their theft scheme by working for the financial agency, so it is something to fear.

Those inexperienced in using cryptos often believe these investment packages, and that is where they lose their funds. Fake companies often take money from victims and fraudulently shut down the website they were working with.

Crypto heists take over the country in Asia

While JPX notice is worrying for new investors, this crypto issue has dominated the country in Asia for a while. Japan has become one of the unreliable countries to invest in cryptos because there are many companies that at first glance look real, but in reality, they are a vile scam.

Recently, the private investment company in the country, Animoca Brands, spoke about a possible fraud with a virtual universe, not under its authority. Aminoca realized that a metaverse works under the ERC-20 technology from a website claiming to be from the investment company, which is a lie. Likewise, the Japanese firm asks fans to avoid investing in this supposed company.

JPX insists that crypto-scams should be controlled as the firm plans to use the Blockchain network for its benefit. If the JPX crypto project succeeds, other companies may use Blockchain and cryptos without problems.

Although the regulatory authority insists that guidelines be established for listing the tokens, Japan could be on the verge of accepting crypto trading. Simultaneously, MUFG, which would correspond to the most important bank in the country, takes advantage of the Blockchain to offer useful cryptos and open up to the NFT market.

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