The watchdog said that contrary to claims on its websites, Perfect Choice Trade doesn’t represent a Maltese entity. Its domain https://perfectchoicetrade.com is also not known to the MFSA or authorised to provide any type of financial service in or from Malta, including the provision of investment services. Further, it described the firm behind them as likely a scheme of dubious nature with a high risk of loss of money.

“The MFSA wishes to alert the public, in Malta and abroad, that Perfect Choice Trade is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any forex or other financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity,” it said.

MFSA had a peak on its warning list

Following in the footsteps of several European regulators, the Malta Financial Services Authority has revamped its regulatory landscape over the last two years. The changes hit almost all investment services providers, including applicants for Category 2 or Category 3 licenses which allow firms to offer contracts for differences (CFDs) and spot forex contracts under the MiFID regime.

One of the changes for Category 2 Investment Services Licence 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 licence holders. The tougher rules came as the Category 2 firms were assuming a significant element of risk as Category 3 Investment Firms, albeit for a very short period of time until such instruments are transferred to the respective counterparty.

Furthermore, the Maltese financial watchdog emphasized that operating a crypto-related business in the country requires an MFSA license under the Virtual Financial Assets Act of 2018.

As such, the MFSA reminded the public that due diligence is important.