Bitpanda’s Evil Twin: Clones Undermine Trust in Crypto

Bitpanda’s Evil Twin: Clones Undermine Trust in Crypto

Time Stamp: October 2, 2023 7:24 AM
Source Node: 2912726

The Spanish
financial market regulator, The National Securities Market Commission (CNMV),
released a warning list today (Monday) about unregulated entities offering
trading platforms for cryptocurrencies and forex to clients in Spain and
Europe. Among them is a clone of the popular digital asset exchange Bitpanda,
deceptively named Bits Panda.

The latest
warning list from the Spanish CNMV includes 16 entities primarily involved in
FX and crypto trading. The full list can be found in the regulator’s official
document.

“According
to CNMV records, these institutions are not registered in the corresponding
registry of this Commission and, therefore, are not authorised to provide
investment services or other activities subject to the CNMV’s supervision,” the regulator
stated.

However, Finance
Magnates drew attention to one specific company on the list, Bits Panda,
whose name and website closely resemble that of Bitpanda, a regulated
cryptocurrency provider with a long-standing market reputation. Although
the website layout of the clone differs from the original, an investor might
think they are dealing with the “real” Bitpanda.

Website of Bits Panda, the clone of a regulated entity.

Real website of Bitpanda.

Are Clones Once Again Disrupting
the Industry?

Clone
websites were once a significant issue in the retail FX/CFDs industry and have
now become a problem for commission-free trading platforms and social and
cryptocurrency trading platforms as well.

This is
confirmed by a FCA warning in September against a BUX platform clone, which offers
commission-free trading. In August, Germany’s BaFin warned against a clone of
FORTEX, and Italy’s Consob blocked access to clones of E*TRADE and ActivTrades
in June.

Finance
Magnates also
reported on the widespread issue of Telegram channels exploiting the names of
well-known brokerage brands, including Plus500, eToro, and FXCM, to sell
investment signals or offer shady services. Investment scams on social media
impersonating established brands have become rampant. As an industry insider
said: “Clones are like mushrooms. You take down one, and ten more will
take its place.”

The Spanish
financial market regulator, The National Securities Market Commission (CNMV),
released a warning list today (Monday) about unregulated entities offering
trading platforms for cryptocurrencies and forex to clients in Spain and
Europe. Among them is a clone of the popular digital asset exchange Bitpanda,
deceptively named Bits Panda.

The latest
warning list from the Spanish CNMV includes 16 entities primarily involved in
FX and crypto trading. The full list can be found in the regulator’s official
document.

“According
to CNMV records, these institutions are not registered in the corresponding
registry of this Commission and, therefore, are not authorised to provide
investment services or other activities subject to the CNMV’s supervision,” the regulator
stated.

However, Finance
Magnates drew attention to one specific company on the list, Bits Panda,
whose name and website closely resemble that of Bitpanda, a regulated
cryptocurrency provider with a long-standing market reputation. Although
the website layout of the clone differs from the original, an investor might
think they are dealing with the “real” Bitpanda.

Website of Bits Panda, the clone of a regulated entity.

Real website of Bitpanda.

Are Clones Once Again Disrupting
the Industry?

Clone
websites were once a significant issue in the retail FX/CFDs industry and have
now become a problem for commission-free trading platforms and social and
cryptocurrency trading platforms as well.

This is
confirmed by a FCA warning in September against a BUX platform clone, which offers
commission-free trading. In August, Germany’s BaFin warned against a clone of
FORTEX, and Italy’s Consob blocked access to clones of E*TRADE and ActivTrades
in June.

Finance
Magnates also
reported on the widespread issue of Telegram channels exploiting the names of
well-known brokerage brands, including Plus500, eToro, and FXCM, to sell
investment signals or offer shady services. Investment scams on social media
impersonating established brands have become rampant. As an industry insider
said: “Clones are like mushrooms. You take down one, and ten more will
take its place.”

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