Is This Crypto Exchange A Safe Provider?

Founded in 2019 in Estonia, the Coinumm exchange enables users to trade popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The website highlights that the platform facilitates direct crypto transfers to users’ wallet addresses. 

However, the legal background of this firm is rather dubious, indicating that the platform may potentially be a scam. We investigate further in our Coinumm Review to get much-needed answers and show readers whether they should trust the suspicious exchange. 

Legal Info: Is Coinumm Regulated?

The User Agreement stipulates that the platform is governed by the laws of three different jurisdictions – Estonia, Lithuania, and Poland. The central firm is registered in Estonia. However, none of the three entities are regulated, making the exchange risky, just like Monfex.

It is important to highlight that all three countries belong to the European Economic Area (EEA), in which European Securities and Markets Authority (ESMA) laws are in force. 

ESMA provides MiFID passports to authorized entities, enabling them to conduct business across Europe and offer compensation contracts of up to 20,000 EUR in case of insolvency or suspicious losses. Engaging in trading activities on this platform carries substantial risks due to the absence of regulatory oversight.

Therefore, we recommend you trade firms that are licensed to operate under the jurisdiction of esteemed financial market authorities such as the FCA (UK), SEC (US), ASIC (Australia), IIROC (Canada), MAS (Singapore), CySEC (Cyprus), etc. 

Trader Reviews – Sharing Experiences

We searched for Coinumm reviews on trustpilot.com only to discover that the website detected several fake reviews for this company and removed them. Not a good look for the shady exchange. A verified user called them fraudsters, adding that the company works with the scammers, they will take your money.

More complaints can be found on scamadviser.com. Negative reviews helped us expose numerous frauds such as the FTMO scheme so be sure to always check the honest feedback your provider received.   

Crypto hoodwinkers typically lure potential victims into their schemes using private Telegram channels and WhatsApp chats so be careful. Just check out this Reddit thread.

Who Are Coinumm’s Targets?

According to godaddy.com/whois, the coinumm.com website domain was created on August 30, 2019. Since then, the swindling crypto platform has mainly been targeting unsuspecting traders who reside in the following countries:

• France;
• Italy;
• Poland;
• Slovakia;
• Czechia.

All three countries are EU members, meaning their respective regulators implement common European regulations and the MiFID passport system. They require market participants to obtain the aforementioned license. To reiterate, this exchange is not ESMA-approved.

We have already stressed the fact that if you invest money in this platform, you cannot count on help from the regulators or financial compensation.

Which Trading Platform Is Available?

The exchange offers a relatively simple web terminal that supports spot cryptocurrency trading. The Coinumm cryptos include popular choices such as Bitcoin, Ethereum, Ripple, and Litecoin.

While the platform ensures users have access to basic tools such as graphs, charts, and indicators, it lacks any remotely advanced options, making trading relatively ineffective in the long run.  

We thus recommend avoiding unreliable platforms and sticking to licensed providers that support recognized third-party software like MT4 or MT5. 

MTs boast an array of cutting-edge tools, including automated trading, live market reports, advanced charting capabilities, a user-friendly interface, and instant order execution.

Outlined Fee Structure

Coinumm outlines various fees associated with buying and selling cryptocurrencies on its platform. For purchases using VISA/MasterCard, Neteller, Skrill, SEPA/SWIFT, and PaySafeCard, users face processing fees ranging from 0% to 11%, with additional Coinumm fees ranging from 3% to 6%. 

Network fees also apply. When selling, SEPA incurs a 20 EUR processing fee and a 6% platform fee, while Neteller, VISA/MasterCard, and Skrill transactions involve processing fees of 4.5% with varying exchange fees. Maker and taker trading commissions were not disclosed.

Suspicious Affiliate Program

The Coinumm affiliate program grants users up to 0.8% of the profit generated by new members recruited through their referral link. Additionally, the program allows partners to earn up to 0.8% from each exchange via monitoring. 

The process involves creating an account, obtaining a referral link, referring customers, and earning commissions of up to 20%. This program is supposed to expand the client base and improve collaboration with monitoring partners.

However, it is essential to highlight that the described structure bears a resemblance to a Ponzi scheme, primarily centered around recruiting new members. Ponzi schemes typically rely on using funds from fresh investors to meet returns for existing ones. Caution is strongly advised!

Funding Options and Refund Methods

Coinumm lists several methods that can be used to buy crypto on the platform and withdraw generated funds:

• Credit/debit cards (MasterCard, VISA);
• Wire transfers;
• E-wallets (Skrill, Neteller).

A MasterCard/VISA transaction can be reversed via a chargeback. You can request a chargeback at your issuing bank within 540 days of the transaction. Wires require a recall but this process will only work if the payment hasn’t gone through yet.

If you experience any withdrawal-related issues on the platform, please contact us. We have experts who specialize in various fund recovery methods and we gladly offer our services. 

Key Information To Consider About Coinumm

To sum up, we give a verdict on the platform – Coinumm is a shady crypto scheme designed to defraud European traders and investors. The platform is not regulated or approved by any financial authority.  

We do not recommend the exchange because it is nothing but a hoax to deceive users through a bogus website and fake reviews.

If you have fallen victim to the Coinumm scam and cannot withdraw your funds, we offer professional services and assistance. Book your free consultation with Scam Brokers Reviews today!

Book a free consultation with us and start the chargeback process.

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