Bafin orders crypto exchange GmbH to cease operations as a financial brokerage

Federal Financial Supervisory Authority BaFin has ordered crypto exchange GmbH to stop operating as a financial brokerage. This is because it does not have regulatory authority to run a financial commission business.

The firm has been selling Bitcoins to customers and then transferring the gains to their accounts in Euros within 30 minutes. However, some customers said they had not received their payments even after transferring Bitcoins to the firm. The company was also not auditing by BaFin as claimed.

Also Read: SBI crypto exchange to use Ripple’s XRP as its official digital currency

The regulator issued cease orders against three companies last year. This was due to their connection to OneCoin, which was also targeted by regulators in India and other countries for Ponzi activities. Mumbai police arrested 23 people in OneCoin and claimed its dealings and promoters amassed close to Rs. 75 crore.

BaFin also warned people last year about the risks involved with initial coin offerings. They said these were highly speculative and risky.

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Sara Noah

Sara Noah is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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