GSTrade: A Closer Look at the Concerning Aspects
GSTrade exchange offers trading of its native token, G999, against various cryptocurrencies. The company claims to have revolutionized blockchain technology. In this unbiased review, we will delve into some troubling aspects of this business.
Is GSTrade a Regulated Cryptocurrency Exchange?
GSTrade is owned by GSB Gold Standard Pay Ltd, a registered company in Kazakhstan. It is listed in the register of the Ministry of Economy and has received accreditation from the Agency for Regulation and Development of the Financial Market. This accreditation allows GSTrade to provide payment processing, foreign exchange, and cryptocurrency services, making it regulated by AIFC.
Additionally, GSTrade has a branch in Sweden called GSB Gold Standard Pay KB, registered with the Stockholm Country Administrative Board. However, this branch is not authorized by the Swedish FI to provide financial services. Therefore, the only approval for GSTrade comes from Kazakhstan and applies to countries that accept this license in their legal jurisdiction.
GSTrade’s owner, Josif Heit, claims that investing in the native token can lead to a multiplication of investments in the future as the coin gains market value. However, the token’s highest price was back in July 2022, at $0.0075 per token. Since then, there have been no significant fluctuations, with the current value at $0.0041.
Warnings Issued by Financial Authorities
There have been concerns regarding GSTrade’s activities outside its authorized scope. The Alberta Securities Commission, a Canadian provincial regulator, has issued a warning against GSTrade and its domain gstrade.exchange. According to the notice, this website lacks approval to engage in activities that require a license, such as trading in securities. This raises concerns about the company’s compliance with legal regulations.
Where Does the Exchange Operate? – Countries Of Service
Despite its limitations in licensing, GSTrade has been operating worldwide since its registration in the GoDaddy WHOIS database in October 2020. However, Canadian regulators have already issued warnings, raising questions about the regulatory compliance of GSTrade’s operations. We aim to use personal stories to warn others about the potential risks associated with GSTrade.
GSTrade Trading Platforms Choice
GSTrade, also known as Gold Standard Trade, provides limited information about its platform. They mention that it consists of an e-wallet, crypto exchange, and a native token, but without specifying the type of platform. Unfortunately, a lack of a Demo account means we cannot explore it further.
With no available desktop or mobile links, it is likely that GSTrade operates on a browser-based proprietary platform. However, it is worth noting that such a platform may offer less security and fewer features compared to well-known platforms like MT4, MT5, and cTrader.
Trading Assets On Offer
GSTrade primarily focuses on trading its native token, G999, against other major digital tokens such as BTC, ETH, USDT, and LYS. Additionally, there are other trading pairs available, including BTC/ETH, ETH/USDT, GRT/ETH, and more. The website states a trade commission of 0.2% on all coins, but leverage and other commissions are not clearly specified.
It is worth mentioning that the G999 token has been classified as an MLM scheme. G999 operates on its own blockchain developed by the company. Furthermore, the owner of GSTrade sells tokenized real estate, which raises suspicions about the motives behind the G999 token.
Account Membership Types
GSTrade offers different rewards based on your account membership type. The rewards range from 1.75%/year for no membership to 5.0%/year for premier advantage membership. Allegedly, you will receive rewards in your personal wallet for every 10080 blocks. This MLM-like structure surrounding the token raises concerns about its legitimacy.
Unfortunately, there is limited information on how to upgrade your account membership, except for the requirement of exchanging a voucher. Additionally, they do not specify any minimum deposit requirements for the different account types.
Can I Use a Risk-Free Demo Account?
GSTrade does not provide a risk-free Demo account. Instead, you are required to make a deposit without knowing the exact amount. Presumably, after completing the registration process and providing your personal information, you will gain access to this information. We strongly advise you to consider reputable exchanges that hold a license in your legal jurisdiction. This is the best way to ensure the safety of your funds.
GSTrade Withdrawal Options
According to the FAQ section, GSTrade only allows withdrawals in cryptocurrency. You need to log in to your account, choose the cryptocurrency option, and paste your wallet address to initiate a withdrawal. It is worth noting that this implies the need for another exchange where you can convert your crypto to fiat currency and transfer it to a bank account. Additionally, crypto transactions are less secure as they are not subject to chargebacks.
When dealing with unverified merchants, we always recommend using a credit card for transferring funds. This way, you have the option to submit a dispute with your bank in case of potential withdrawal issues.
What Should I Do If I Have an Issue With GSTrade?
If you encounter any issues with your GSTrade account or withdrawals, do not hesitate to reach out to us. Our chargeback experts and CipherTrace crypto analysts are available for a free consultation to evaluate your case. Your money matters, and we are here to help you.