Sunday 16 / March / 2025
Muscat: Oman’s FSA has warned all individuals and institutions against dealing with unlicenced electronic platforms that promote services related to digital currencies and financial instruments via the Internet and social media platforms.
As part of the ongoing efforts to protect investors and ensure a safe investment environment for investment, the FSA has cautioned online platforms that provide services related to commodities.
"These include, among others, gold and crude oil, crowdfunding platforms and the promotion of shares of companies listed on regional or global stock exchanges,” the regulator added.
FSA pointed out that these platforms, despite their apparent credibility, involve significant risks that may lead to the loss of money and place individuals’ investments at risk.
Highlighting the risks relating to this matter, Majid Ahmed Al Abri, the FSA’s spokesman, said that these platforms rely on attractive marketing strategies to lure investors. These include promises of huge and quick returns, as well as providing attractive offers that include discounts on fees or free trades during the first months in addition to offering financial rewards to new investors upon registration or by inviting friends and acquaintances to join the platform.
He pointed out that fake success stories are being advocated about people who claim to have achieved huge profits in an attempt to convince others that the opportunity may be lost.
Al Abri stressed that public awareness is the first protection line to prevent falling into the trap of these platforms. Therefore, the FSA calls on the public, individuals and institutions, to raise levels of caution and not be swayed by false promises and fake temptations by avoiding dealing with any electronic platform that deals with activities related to securities unless it is licensed by the FSA.
The regulator further pointed out that unlicenced platforms do not provide legal protection for investors making their money exposed to risks.
He stated that these platforms are often characterised by opaque financial operations, which increase the possibility of committing illegal activities such as money laundering and pose a threat to the country’s financial and economic stability.
Al Abri said, “We call on all to be fully aware and verify the credibility of the platforms before taking any investment move. The FSA recommends that those wishing to invest through activities related to securities via electronic platforms or companies to ensure that they are licenced and registered on the FSA’s website (www.fsa.gov.om) and the smartphone application, which enables them to view the list of companies and entities licensed to practice these activities.”
As part of its ongoing responsibility, the FSA emphasised its full commitment to monitoring and following up on any irregularities in the financial market and taking appropriate legal measures to protect the rights of investors and enhance confidence in the investment environment.
The FSA calls on citizens and residents to report any suspicious platforms through the whistleblowing service available on the website and smartphone application, stressing that collective cooperation and awareness is the best way to combat these illegal activities and protect the national economy.
