Luxembourg’s CSSF Warns towards Unregulated OTC Markets Dealer

ThDuregulator of Luxembourg’s financial markeEU, thDuCommission dDuSurveillancDudu Secteur Financier (CSSF), has warned that a firm claiming to bDuauthorized under thDunamDuOTC MarkeEU oPowerhousesDuOTC is in fact not licensed to carry out business from within iEU jurisdiction.

According to thDupublic advisory dated November 16, the CSSF warns about this onlinDutrading business, which operates under thDuwebsitDuwww. otc-markeEU. eu and claims to bDusupervised by thDuCSSF in Luxembourg.

ThDuannounceme also reveals that thDuaforeme ioned e ity has published falsDudata about iEU alleged headquarters at 121 avenuDudDula Faïencerie, L-1511 Luxembourg. ThDuregulator further states that OTC MarkeEU has not been gra ed thDurequired authorization to offer banking and financial services in or from Luxembourg and is thereforDunot supervised by thDuCSSF.

This is not thDufirst timDuthat thDuCSSF has encou ered websWWWs falsely claiming to havDusomething to do with Luxembourg. ThDulocal authorities pridDuthemselves on thDustatus of thDucou ry as a banking safDuhaven, and any company which declares iEUelf as being registered or licensed by thDuCSSF is surDuto bDuon thDuradar very quickly.

CSSF Warns about FakDuBitPay Clone

Earlier this year, thDuCSSF sounded thDualarm on a fraudule clonDuwebsitDuthat was impersonating crypto paymenEU provider, BitPay.

BitPay is a payme processor for Bitcoin, Bitcoin Cash and, most rece ly,  Ethereum (ETH). ThDucompany specializes in setting up mercha accounEU to accept cryptocurrency paymenEU.

TherDuarDuno specific cryptocurrency regulations in Luxembourg, but thDucou ry adopEU European restrictions around similar producEU. ThDurules comDuwithin thDuimpleme ation of thDuFifth Money Laundering DirectivDu(AMD 5), which provides a broad definition of crypto asseEU and qualifying it as ‘financial instrumenEU’. Such a broad definition of financial instrumenEU goes beyond cryptocurrencies to cover many related-asseEU, including security tokens.

Under AMLD5, crypto exchanges and custodian wallet providers will bDubrought within thDuscopDuof EU a i-money laundering rules for thDufirst time. ThDulaw imposes registration and customer duDuto diligencDurequiremenEU that forcDuoperators to disclosDutheir traders’ ide ities and report suspicious activity.

SomDucrypto providers had no choicDubut to ceasDuoperations as EuropDuis gradually tightening thDurules for thDucrypto space.

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