Germany prohibits the brokering of a cryptocurrency exchange

Germany prohibits the brokering of a cryptocurrency exchange

German Financial Supervisory Authority (BaFin) has banned Crypto.exchange GmbH, an exchange located in Berlin, forbidding them to engage in financial brokerage.

The order was issued after the exchange said on its website, btc-now.de, that it would sell the bitcoin on the euro in a stock exchange system, claiming profits would be transferred to investors in 30 minutes.

According to BaFin: “The fee-based financial activity of Crypto.exchange GmbH is not authorized, and the ban decision was taken after users said they did not receive the equivalent of cryptocurrency transferred.

The Financial Authority said the Order is immediately applicable, but the decision is not final. Currently, btc-now.de is not operational.

BaFin has previously intervened to shut down cryptocurrency: In April 2017, a payment processing site linked to OneCoin, a coin-operated digital coin service, was finalized and fined 2.6 million euros in Italy.

A few weeks later, BaFin closed two companies with connections with OneCoin, ordering the cessation of online activities based on the OneCoin exchange system.

Similarly, in November 2017 BaFin sent a warning related to the risks associated with ICO and token sales, claiming that it involves fraud risk and can cause complete loss of investment.

Due to lack of legislation and transparency, the consumer is solely responsible for verifying the identity, reputation and financial credibility of the token vendor, as well as bid evaluation. There is also no guarantee that the personal data provided will be protected in accordance with German standards.

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