Are high-purchase cryptocurrency buyers trustworthy!? Delving into the realities of Bitcoin and altcoin buyers!

2017 was said to be the first year of cryptocurrency, and especially at the end of the year many cryptocurrency traders were born.

However, when you say “trader,” it sounds good, but most traders born at the end of the year were inexperienced investors, i.e., amateur traders.

From around mid-2017, the price of Bitcoin began to rise, and from October it showed rapid growth.

Seeing this upward-curving chart, people jumped on it, so to speak, they were like locusts.

And from the beginning of 2018, the overall market capitalization of cryptocurrencies shrank sharply, and those locust traders who could not unload their holdings by year-end bore large unrealized losses.

As those with unrealized losses began to be targeted by others, around the same time, suddenly a number of brokers began to appear, which we will introduce here: Purchase brokers.

To repeat, it’s not an “exchange,” but a “buying service.”

Those with a keen sense may already have a guess. It sounds shady, doesn’t it? lol

So, let’s take a look at this “cryptocurrency buying industry” together.

Is the buying of cryptocurrency legally safe? Is it illegal?

Whether cryptocurrency buying is legally safe is a very difficult question.

From our investigation, it seems like there are approximations to the law that are almost “nearly black gray.”

In the first place, cryptocurrency itself still has ambiguous legal status.

For example,

• Is cryptocurrency an “asset”… or a “financial instrument”…
• Value attaches to each currency, but it isn’t a “thing”—it is an Internet-based “data (cryptography)”
• On the blockchain, whose coins belong to whom are shown, but since it is managed in a virtual space, they are not visible to the eye.

and so on. There are so many “gaps in the law” that once you start, you won’t be able to stop explaining them.

In other words, the brokers operate in these legal gaps.

Currentlyto operate a cryptocurrency exchange business, registration with the Financial Services Agency is required.

However, buying brokers have not been registered with the Financial Services Agency.

But, under civil law, cryptocurrency is treated not as currency but as an “object,”

so it could be considered as a secondhand item, although this interpretation is not clearly defined, and even lawyers’ opinions differ.

However, under the Payment Services Act, to prevent money laundering, cryptocurrency exchange operators are registered, so it is better to consider buying as a business on the premise of registration.

From 2018, the Financial Services Agency tightened rules for exchange operations as well.

Therefore, regarding buying brokers,it can be interpreted as illegal.

Are high-priced cryptocurrency buyers a fraud?

First, please read the article from the Nihon Keizai Shimbun below.

Several brokers have appeared one after another at the homes of elderly people, urging them to buy internet-based cryptocurrency, and cases of trouble are increasing, according to coverage by National Consumer Affairs Center as of the 10th.

In the past year, more than 100 inquiries came from all over the country, and some elderly people were swindled out of large sums of cash.

According to the National Consumer Affairs Center, many consultations came from elderly people in the Kanto region; in most cases a brochure related to cryptocurrency arrived at their homes.

Afterward, there would be phone calls from people posing as buying brokers saying, “This cryptocurrency can be bought only by those who received the brochure. If you purchase it, we will buy it back at a high price.”

If you agree, you pay the money to the cryptocurrency selling company. However, there have been troubles where they were not bought back as promised, or contact with the buying brokers was cut off.

There are cases where fake police officers or the like recommended purchases.

A woman in her 70s from Nakatsugawa, Gifu Prefecture, was deceived out of 110 million yen last year after being approached to buy cryptocurrency.

An 80-year-old woman in Mito City also suffered damages of 35 million yen.

All of them received brochures at home, and various people and companies appeared in related materials.

They were skillfully lured by phrases like “you will never lose money.”

Quote: Nihon Keizai Shimbun “Cryptocurrency scams surge; high-price buying lure and soliciting consultations increase”

The article above is about a 2016 incident concerning “buying brokers.”

There is a trading institution recognized by the Financial Services Agency called an exchange, so why do they buy at a markup of several percent?

There is a sharp edge to any sweet deal.

I’m not saying that the buying business is entirely “evil,” but it is safer to trade cryptocurrency on a “exchange” as much as possible.

Top 3 representative cryptocurrency buying brokers

Now, let’s get closer to the reality of cryptocurrency buying brokers.

The three brokers you often see online are the following three companies.

• CRYPTO MARKET
• CryptoHOPE (unknown existence)
• BIT365

※Exchangers, which operated previously, are currently paused.

CRYPTO MARKET

First impression after comparing the companies is that the most “decent-looking” website is theirs.

They offer many trading pairs and, at first glance, it might seem like an exchange.

However! Among the customer testimonials, the photo of a person named “Miho Ota” turned out to be from a stock photo site.

Source:CRYPTO MARKET

Source:Rakuten Travel

Also, since the company profile stated “24-hour reception,” I called at 5:00 AM, but the call did not go through.

No matter how many times I called, there was no answer.

Personally, I felt it seemed more credible than the two companies below, but… it’s a disappointing result.

CryptoHOPE

First, I view this company as a nearly completely shady buying broker.

The official site is deleted now, but the testimonials page used photos that were all “stock site references.”

Moreover, the cryptocurrency issued by CryptoHOPE is called “Castle.”

The cited sources below explain in detail, so please take a look.

Castle is a trading platform token issued by a future cryptocurrency exchange that is planned to be established. In June 2018, a presale ICO was held, and it was sold at one-tenth of the price of a cloud sale.

Investors who learned that the presale price rose tenfold would not have purchased in the cloud sale, so the one-tenth price manipulation may have been intended to create the impression that the presale price was cheap, and this site labeled the Castle project as having suspected fraud.

Since the exchange itself has not opened, listing is nowhere near, so even if you exchange your cryptocurrency for Castle, you cannot cash out.

Also, since the token price is determined only after listing, it is not yet known how much Castle will actually sell for. The 10% bonus on Castle added at purchase is almost non-existent.

Therefore, CryptoHOPE is not providing cryptocurrency buying services but rather selling Castle ICOs.

Quote:Hajihaji Bitcoin Blog

I don’t think the above blog is the entire story, but considering it is already inaccessible, well...

The dark side of brokers is gradually becoming visible.

BIT365

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