As reported earlier this week by Global Crypto, MTIs alleged FX provider FX Choice blocked their account. Global Crypto reached out to MTI the day the news broke, and this morning received an official statement from the Cape Town based company.
In it, the company adamantly claims their mission is to “break the negative stigma of multi level marketing schemes”, while also claiming that a move away from FX Choice was part of their risk mitigating strategy. The statement further asserts that the original statement from FX Choice could well have been written by someone not officially representing the FX trading provider.
Since then however, FX Choice have stood by that statement with official communication to Global Crypto, and an official link to the originally reported statement on their Twitter account:
Considering MTI claim to have an objective to break the negative stigma around “online passive income building”, we asked some of our community members what the popular South African trading company could do to dismantle the negative reputation they have garnered. Some of the primary suggestions included:
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Pay a recognised independent fund administrator to audit and verify the funds regularly as is common practice in the asset-management industry
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Have confirmed proof of trading transactions to wallets they can prove they own
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Publish monthly trading history in a consumable format
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Have an independent media outlet such as Global Crypto sign an NDA and visit their place of business to witness first hand the trading operation (with an article carefully written about the companys legitimacy without revealing so called trade secrets)
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Disclose the entire process of where members deposited Bitcoin goes
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Gain the trust of regulators before clients (being vetted by a regulator would assist with a lot of scepticism says one user)
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Have affiliates recruit in a more professional manner
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Remove the 24 hour notice period for withdrawals
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Explain in “101 English” what they are doing and how the mechanism works
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Explain why FICA “know your customer” checks arent done when every other FSP requires such checks
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Disclose who the new Forex broker is
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Provide more answers on enclosed MTI community groups when questions are asked
These are some of the primary steps that Global Cryptos users believe MTI should take in order to provide legitimacy to their operation. While we recognise not all of them can be achieved, just a few is probably a good start.
Global Crypto will continue to reach out to MTI for further clarity on their operation and ensure transparency is provided.
In the meantime, herewith MTIs official statement regarding the FX Choice communication released on Tuesday 4 August [SIC]:
Mirror Trading International (Pty) Ltd, also known as MTI, is a South African registered Company that trades Bitcoin on behalf of itself and for its members. Trading takes place within the framework of a referral scheme, which is no different in broad principle to referral schemes used by many FX Brokers and insurance houses, that have been in existence for many years.
One of the business objectives of MTI is to once and for all break the negative and notorious stigma that the “On-line passive income building” industry is unfortunately well known for with regards to Ponzi schemes and Scams of various sorts. The moment any Bona Fida business of integrity and solid and honest long-term intent comes into existence in this industry, there seems to be an automatic associative assumption that the
business must be a Ponzi Scheme or Scam, purely because it finds itself in this business environment. This is a business environment in which history has shown that most offerings that come into existence in this industry are or have been Ponzi Schemes or Scams. MTI is deeply focused on breaking this destructing negative and notorious stigma.
Another key business objective of MTI is to over the long term, build a preferred global and iconic brand that will stand the test of time. MTI seeks to achieve this through consistently delivering on MTIs brand promise by delivering sustainable growth and value creation and, through providing consistent world class member support, which MTI takes great pride in, for which MTI is well known and respected amongst its members.
An additional key area of leadership focus is Risk Management and Compliance, noting that MTI is in discussions with various regulators. These are key strategic and operating priorities of MTI. A number of risk mitigation initiatives are under way. For example, the MTI trading pool is no longer with a single broker and is being carefully spread across a portfolio of carefully selected brokers who can consistently provide the regulated security and performance track record that MTI requires.
Furthermore, MTI proudly has a member support service as previously mentioned, that is most probably one of the best in this industry and other industries worldwide. Any member can add or withdraw his/her Bitcoin in part or in full easily and without any fees. Members have control of their Bitcoin in this regard at all times.
Regarding online commentary platforms such as what Global Crypto refers to, the agenda of such platforms also needs to be questioned and, who monitors such platforms to ensure that they are legitimate with what they portray themselves to be and the content that they make available？ Such platforms typically have some kind of “industry protection” or “industry watchdog” agenda. There have been many such platforms in recent years, some cleverly designed and masked to steer the public from one offering to another. As said before, this is a notorious industry. Some of these commentary platforms themselves have been scams.
Most importantly, such platforms should as a minimum requirement be neutral and objective and should not have sponsoring FX brokers, which creates a conflict of interest, which brings the integrity and motives of such platforms under question. Regarding any person using the title “representative” of a Forex Broker, many FX Brokers in their referral programs give the title “Representative” to ordinary subscribers to their platforms.
To demonstrate this principle, the writer has had this title with two FX brokers for a number of years, well before MTI came into existence. These FX brokers have nothing to do with and are not related to MTI in any manner. Any individual who wishes to make use of a typical FX Brokers referral system to build referral income through recruiting new members, will most probably be given the title “representative” or similar by the FX Broker. The title “representative” in the forex brokering environment generally does not in any manner mean that that person is a shareholder, director or a full-time or part-time employee of the FX broker in question. He/she is an ordinary subscribed member who may have something to say on a public platform. Caution should wain in this regard. MTI is committed to genuinely and truly transforming this industry through delivering sustainable growth and value creation for all its stakeholders, now and into the long-term term future, with risks well managed and through being compliant.
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