The Maltese guard warns of a fake Perfect Choice Trade broker
The Malta Financial Services Authority (MFSA), the regulator responsible for overseeing the forex sector on the Mediterranean island, today issued a warning against a forex broker offering its services without authorization. to do so.
The watchdog said that contrary to what it states on its websites, Perfect Choice Trade does not represent a Maltese entity. His domain https://perfectchoicetrade.com is also unknown to the MFSA or authorized to provide any type of financial service in Malta or Malta, including the provision of investment services. In addition, it described the firm behind them as likely a scheme of a dubious nature with a high risk of losing money.
“The MFSA would like to warn the public, in Malta and abroad, that Perfect Choice Trade is NOT a Maltese registered company Nor licensed or otherwise authorized by the MFSA to provide any forex or other financial services that are required to be licensed. or otherwise authorized under Maltese Law. The public should therefore refrain from doing any business or transaction with the above-mentioned entity, “she said.
The MFSA was at the top of its alert list
Following in the footsteps of various European regulators, the Malta Financial Services Authority has regenerated its regulatory landscape in the last two years. The changes have affected almost all investment service providers, including applicants for Category 2 or Category 3 licenses that allow firms to offer contracts for differences (CFDs) and spot forex contracts under the the MiFID regime.
One of the changes for Category 2 Investment Services License applicants was that the introduction of a higher capital requirement of € 730,000, compared to € 125,000 under the previous rules and similar to the initial capital requirement for current Category 3 license holders. The stricter rules came as Category 2 firms were assuming a significant element of risk as Category 3 Investment Firms, although for a very short period of time until such instruments are transferred to the respective counterparty.
In addition, the Maltese financial watchdog emphasized that the operation of a crypto-related business in the country requires an MFSA license under the Virtual Financial Assets Act 2018.
As such, the MFSA reminded the public that due diligence is important.
