BTSE and the “shameless” justifications for their fraud

BTSE is a new cryptocurrency exchange, claimed to be licensed and regulated in Dubai. Currently, while the legal and transparency issues have not been resolved, BTSE is trying to make fraudulent claims to raise $50 million from the sale of their tokens.

What is BTSE? Whether or not the story of BTSE is deceptive?

BTSE is a cryptocurrency exchange in Dubai. However, this exchange is not licensed or regulated as a legitimate cryptocurrency exchange in Dubai. Moreover, claims about their current trading volume are not credible.

According to the Dubai Economic Development Ministry, all companies must obtain a business license from one of the predefined activities on this list. And this rule applies to all the Emirate States in UAE.

BTSE has registered two companies’ licenses for two separate activities. These include “Payment Services Provider” and “Commercial Brokers.” However, you probably also find that none of these services involves running a cryptocurrency exchange. A license that acts as a payment service provider is a license for Paypal-style services and unique digital payment cards except for cryptocurrencies like Bitcoin.


DLA Piper law firm states the definition of virtual currency | Source: DLA Piper Law

And the Commercial Brokers license has no relation to cryptocurrency. By definition, Commercial Brokers only include firms engaged in bringing sellers and buyers involved in wholesale and retail trade together in return of a commission or remuneration; these firms are neither allowed to trade on own account nor practice brokerage in real estate, services, shares and bonds, and finance.

BTSE’s website, meanwhile, appears to be hiding the licensing requirements on the footer of the btse.com website when viewed from within the UAE but still showing them when viewed from other countries. This is certainly enough to let BTSE know precisely what they are doing and are intentionally hiding the footer to evade supervision from the Dubai government.


Source: Reddit

From Dubai:


From anywhere else:


However, soon after this discovery was spread, BTSE quickly changed the footer. They have applied this change throughout the site but forgot to remove the mention from their terms and legal terms from the legal document. Therefore, this behavior has proven they are cheating the community and silently contemplating an unclear conspiracy.

It will not be so serious if they do not proactively admit that they have been licensed and operate under regulations from the UAE. And this message is even mentioned in BTSE’s proposal to sell tokens calling $50 million.

BTSE CEO defends exchange scam citing a previous scam

Almost nobody has ever heard of BTSE their incredibly incompetent marketing fiasco began in December with the Gym Friend meme triggering well known and self-proclaimed Bitcoin maximalist, Samson Mow into a Streisand effect that spilled over and kicked off scrutiny about BTSE because of Samson’s public association with BTSE and their marketing director, Lina Seiche.

However, after being exposed by many people about the non-transparency of the license, etc. Jonathan Leong, the CEO of BTSE, attacked Whaleclub’s Telegram channel to warn him that he will sue anyone who slanders them.

To make things even more amusing, Leong justified their innocence by publishing a Coindesk article from 2014 with the announcement of UAE’s first Bitcoin exchange launches in Dubai. However, this article is about IGOT.com, not BTSE.


Source: Telegram

And the story gets more climax when IGOT is a monumental hoax. In the list of the Dubai business license registry, we do not see any licenses granted to a company called IGOT. These searches also show old licenses and expire if they exist before.


Source: Dubaided.gov.ae

It seems a strange coincidence that both IGOT and BTSE both use the Commercial Brokers business license as the license to operate the cryptocurrency exchange platform.

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