Malta Regulator MFSA Warns of Unlicensed Exchange UMarkets

The Malta Financial Services Authority (“MFSA”) has become aware of an entity operating under the name of UMarkets, which has an internet presence at https://www.umarkets.com/, the regulator said in a statement today.

The entity purports to be an Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term broker owned by Market Solutions Limited, which offers FX, commodities, CFDs and indices, according to the MFSA.

UMarkets also claims to have “substantial relationships in Europe and Asia with major banks, such as HSBC”.

“The MFSA wishes to alert the public, in Malta and abroad, that UMarkets is not a Maltese registered Company, nor licensed or otherwise authorised by the MFSA to provide the service of an Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term or other financial services, which are required to be licensed or otherwise authorised under Maltese law,” the statement said.

It advises the public to refrain from undertaking any business or transactions with the above-mentioned entity.

The MFSA also makes reference to warnings that have been issued by a number of foreign regulatory authorities against UMarkets and Market Solutions Ltd, including Belgium, Spain and Australia.

Unconventional channels used to approach consumers

The regulator reminds consumers of financial services not to enter into any financial services transaction, unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.

Investors are advised to be extra cautious when being approached with offers of financial services via unconventional channels, such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA at https://www.mfsa.com.mt/pages/licenceholders.aspx.