Liechtenstein-based EXW Global is under pressure. Regulators in Austria and Germany have issued warnings, the company is being accused of running a Ponzi scheme, and the management is under investigation.

The financial market watchdogs in Germany and Austria have both issued warnings against Liechtenstein-based EXW Global AG. The business is not licensed to provide the offered services in neither Austria nor Germany, according to the regulators.

EXW offers a crypto wallet and an exchange. The website reads, “Exchange, Wallet, Trading, Payment – EXW is our answer to the growing problems of the Old Economy, globalization and international payment traffic.”

The company was established on September 24, 2019, in Liechtenstein, with its headquarters located in the city of Klagenfurt, Austria. The idea was to create a conversion platform between cryptocurrencies and Euros. The company’s EXW token should also provide a stable source of profits from the fees that are generated by exchanging fiat currencies and cryptocurrencies, from the trade with digital assets, and cooperations within the automotive industry.

EXW ist not licensed in Austria and Germany

The website reads: “The EXW token is an ERC-20 token with which you can earn up to 0.32% profit daily without additional effort. The profits are calculated on the basis of a plan calculation for the cooperative’s share.”

“Up to” 0.32% profit daily “without additional effort” sounds good, but doesn’t really mean anything. But worse than EXW’s marketing slang is their lack of licensing. Both the FMA Austria as well as the German Bafin have issued warnings:

The FMA Austria advises that EXW GLOBAL AG “has not observed its reporting obligations to the New-Issue Calendar pursuant to Article 24 of the Capital Market Act 2019 (KMG 2019; Kapitalmarktgesetz 2019) in relation to “EXW Coin Bonds” offered in Austria.”

The Bafin says EXW does not have a Bafin license to provide financial services according to §32 of the German Banking Act (KWG) and is also not authorized to provide any payment services according to §10 of the German Payments Supervisory Act (ZAG). The company is not under the BaFin’s supervision and any licenses that had previously been granted to EXW in the United Arab Emirates are not valid in Germany.  

EXW management under investigation

The website offers little explanation on how the profit generation actually works. Several sources accuse EXW of operating a Ponzi scheme, which is based on a reward system that promises high returns that will be financed short-term through gullible investors.

According to Gerlach Report, 15 employees of the company are currently under investigation by the public prosecutor in Klagenfurt and the public prosecutor in Liechtenstein is investigating both directors of the business. The subject of the investigation is a newsletter in which EXW allegedly stated false information.

Although the crypto space has become more professional over the past two years and regulators worldwide have put the industry under increased scrutiny, there are still more than enough dubious players out there. As with any other investment, product, or service, users need to do their due diligence before committing any money. What’s going to happen with EXW remains to be seen. But the future doesn’t look bright.

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