Cryptocurrency General News ICO

BaFin Orders Crypto Firm to Cease Operations in Germany



BaFin, an independent German regulatory institution, has red-flagged what it called a scandalous activity of Crypto-Capitals, a crypto company that offers cryptocurrency-focused trading products, including CFDs, but fails to comply with the Germany financial legislation.

The German watchdog BaFin, seems to have ‎stepped up their game and gone after illegal cryptocurrency companies and has issued warnings over cryptos, informing the public about various unrealistic technological claims and even scams.

The German Institution has been advising the general public to always verify the company’s identity (country of establishment, identity details, owner’s status etc.) and to never put their trust in any crypto company if it cannot be clearly identified.

In its effort in enforcing compliance with rules and regulations in the crypto space, the institution has issued numerous advisories in recent years, the most recent was when it announced specific details about its stance on retail forex and trading of CFDs. BaFin focuses on brokers that do not provide negative balance protection, exposing clients to unwarranted losses.

Been wary of the enlarging crypto industry, BaFin has been consistently adamant in its warnings of investors on the potential risks associated with investing in all cryptocurrencies. BaFin has also issued warnings over ICOs, informing the public over high risk associated with various unrealistic technological claims and mostly scams as well.

Germany continues to be an active leader in its regulation and assessment of the cryptocurrency Industries. The country’s officials are taking steps to ensure the safety of German citizens and of investors from around the globe. More recently, Germany partnered with France to jointly spearheaded the discussion of Bitcoin regulation at the G20 summit in Argentina.

About the author

mm

Jimoh Abdullahi

An Engineer (B.Eng, M. Eng Biosystems Engineering) and freelance writer. Stacey covers cryptocurrency, the Blockchain technology, and ICT topics. It’s my joy to transform the simplest phrases in a way they reach a reader’s heart to help them discover how technological advancement is disrupting the world as we have known it.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *




Subscribe

Subscribe to get the latest cryptovevo news!