Bitcoin, Crypto currency, Blockchain

BaFin takes action against trading platforms

82aa148ff5163ac2367a5b9bbe98b926 - BaFin takes action against trading platforms

The German financial Supervisory authority BaFin calls for the setting of some of the trading platforms, which offer CFD for crypto-currencies such as Bitcoin.

In the light of the forthcoming decisions on the Bitcoin ETFs the Bitcoin Community sees a large part of the direction of the USA. However, the German authorities are not tired to make decisions.

BaFin assigns with a notice from the 22. August for some of the trading platforms, the “immediate settings of activities of[…], is included by the [respective] company in the unauthorized business of cross-border Internet trading platforms.” The companies concerned, the JAC GmbH, a FinTech Service GmbH and the company “CS Compliance Service”, which all have their headquarters in Düsseldorf.

No cross-border trading without a license

The adoption of the German financial Supervisory authority is in each case in the text. Accordingly, all affected companies will be prohibited from henceforth to bring their services to companies without a license cross-border trade. In the case of services, the Dusseldorf-based company, are each back-office services for the following companies:

  • (operator: Pairs Ltd, Marshall Islands)
  • (operator BP1, Bulgaria)
  • (operator Carter Enterprises OU, Estonia)

The respective trading platforms to offer financial services such as CFD for crypto-currencies. In the activities, the need to let the German companies, henceforth, is “the care of clients and communication under the name of the trading platforms.”

As the BaFin has announced it has ordered “to the operators of the referred trading platforms as the setting of their illicit cross-border activity.”

Companies often with a dubious origin

Elsewhere, BaFin warned already before the trade on an unlicensed Trading platforms:

“A German Internet presence of the trading platform and customer support in German language under specification of German telephone numbers mean that these companies maintain a registered office in Germany. The operator of Internet trading platforms – i.e. the contractual partner of the customer – are called to the websites of the trading platforms, often in very hidden place, for example, in the General terms and conditions. In many cases, well-known Offshore letter-box addresses are specified as a seat. Both the operating companies as well as their alleged corporate offices change frequently. A permit to operate on the German market transactions, do not have the operator a partner in the rule. There is a high risk to the repayment of the deposited funds or the disbursement of funds generated profits will not prevail.“

Reason to panic? Hardly. Finally, the BaFin provides, as before, merely to ensure that only licensed companies operate in Germany. Here, the focus is clearly on the consumer – not to be confused with an Anti-Bitcoin stance.

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