Mauritius Watchdog Flags JennoCrypto as Using Fake License

Mauritius Watchdog Flags JennoCrypto as Using Fake License

The Mauritius Financial Services Commission (FSC) has warned that crypto trading company JennoCrypto is using a fake license, purportedly issued by the watchdog.

According to the FSC notice, JennoCrypto falsely claims to have an Investment Dealer (Discount Broker) Licence, bearing licence number C112010791 issued in June last year.

“The FSC Mauritius hereby informs the public that JENNOCRYPTO and/or any other individuals or representatives operating under the licence are not and have not at any time been licensed by the FSC Mauritius,” the watchdog said, adding that it urges the public to be cautious when dealing with the company or any individual connected to it.

A check by CryptoVest revealed that JennoCrypto does not have much to do with cryptocurrency trading, but is a mere binary options broker that is riding on the wave of popularity of the cryptocurrencies. Contrary to the claims of the binary options brokers, binary options are not an investment product, or options for that matter, but are more akin to gambling and the user has to guess whether the price of a certain asset will go up or down, within a given timeframe. In the case of JennoCrypto, the user has to guess the price movements of cryptocurrencies.

It may appear simple and straightforward, but the binary options brokers, regulated and unregulated, have been alleged of manipulating their trading platforms so that the user always loses and fleecing people out of their last penny. Currently, binary options trading is forbidden in the EU (temporary), Israel (permanently), Canada (permanently) and the US, where only exchange-traded and regulated binary options are allowed.

JennoCrypto also claims to have a crypto mining service, which makes 4%-10% daily profits by using bots that exploit the price movements.

Our check on JennoCrypto’s site also revealed that the company falsely claims that it is also authorized and regulated by UK’s Financial Conduct Authority (FCA) (it is not) and by an entity called “the Malta-Cyprus Securities and Exchange Commission”. There is no such entity – there is the Cyprus Securities and Exchange Commission (CySEC), which indeed was the go-to regulator for most binary options brokers who were trying to be legitimate, and the Malta Financial Services Authority.

Share your thoughts, add a comment!

You must be logged in in order to place a comment.

Article comments

Loading...
No comments yet, be the first to comment this article