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BaFin Launches Investigation in opposition to BitcoinWelt

Bafin logoBaFin Looks Into BitcoinWelt for Illegal Banking Practices in Germany
The German financial market watchdog, BaFin, announced on Friday that they are looking into BitcoinWelt due to allegations that the website is pursuing illegal banking and financial company activities within the country. In response to the alert, the German watchdog simply does not have any control over bitcoinwelt.co.

“In Germany, suppliers to financial institutions need to have permissions lower than the KWG. However, some businesses operate without the necessary authorization,” BaFin noted. However, the agency withheld further information regarding the probe. The website, which is available in both German and English, promotes offering foreign exchange as well as CFDs buying and selling businesses appropriately.

Recently, the German Financial Supervisory Authority also opened an investigation against the Flab Group LTD-run marketplace for purchases and sales, fortexo.co. Similar to BitcoinWelt, the buying and selling website shouldn’t be subject to German government regulation and might be offering unapproved banking and financial services within the country.

The company that owns the website is authorised to provide financial services in St. Vincent and the Grenadines. However, the regulator admitted that it does not always provide the business with the appropriate authorised energy to supply these kinds of enterprises in Germany.

BaFin just sent out a client warning against cryptocurrencies in March. “Regardless of latest value information, digital currencies similar to Bitcoin and different crypto values are extremely dangerous and speculative investments,” the government agency stated. BaFin issued its warning a few days after the European Supervisory Authorities (ESA) alerted investors to the risks associated with cryptocurrency investments. The German agency had issued a warning against digital property back in January when cryptocurrency prices were still quite high.

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