You are using an older browser version. Please use a supported version for the best MSN experience.

Austria Finance Regulator Sees Frauds Rising Amid Crypto ‘Hype’

Bloomberg logoBloomberg 5 days ago Leonard Kehnscherper
a lit up city at night: Racks housing graphics processing units (GPU) mine the Ethereum and Zilliqa cryptocurrencies at the Evobits crypto farm in Cluj-Napoca, Romania, on Wednesday, Jan. 22, 2021. The world’s second-most-valuable cryptocurrency, Ethereum, rallied 75% this year, outpacing its larger rival Bitcoin. © Bloomberg Racks housing graphics processing units (GPU) mine the Ethereum and Zilliqa cryptocurrencies at the Evobits crypto farm in Cluj-Napoca, Romania, on Wednesday, Jan. 22, 2021. The world’s second-most-valuable cryptocurrency, Ethereum, rallied 75% this year, outpacing its larger rival Bitcoin.

(Bloomberg) -- Austria’s Financial Market Authority has seen a record in whistle-blower reports of potential fraud in 2020, with crypto currencies being a focus.

Two thirds of the investment fraud reports were related to crypto- and digital currencies trading products, while the rest was, among others, related to stocks and gold, FMA said in a statement. The regulator said it saw a rise in scam offerings for digital currencies on “dubious” platforms, which were often advertised on social media such as Facebook, WhatsApp, TikTok or Telegram.

“We see a great need for stricter regulation,” FMA spokesman Klaus Grubelnik said on Friday, adding that prosecution of crypto-related fraud was even more difficult as investigations usually have to be conducted across borders. “Fake offerings for stocks and gold have been around forever and these scams are now shifting to digital assets because of the hype,” Grubelnik said.


Video: A look at the role of institutional investors and tech firms in bitcoin's rally (CNBC)

UP NEXT
UP NEXT

Read more: Austrian Bitcoin ‘Scam’ Triggers Police Search Across Europe (1)

Despite recent trading booms, the world’s top banks have so far mostly shied away from offering crypto-related services as high volatility and security concerns prevailed.

For more articles like this, please visit us at bloomberg.com

©2021 Bloomberg L.P.

AdChoices
AdChoices
AdChoices
image beaconimage beaconimage beacon