Independent German regulatory institutions, Federal Financial Supervisory Authority (BaFin) red-flagged the activities of Platincoin. The company is accused of issuing cryptocurrency products without following financial regulations. This speaks volume of Germany’s efficiency in the assessment and regulations of the nascent sector.
On Friday, an independent German regulatory institution, the Federal Financial Supervisory Authority (BaFin) red-flagged the activities of Platin Genesis DMCC. It negated legislations while offering cryptocurrency products, like blockchain wallet and registered coin on Coinmarketcap.
The Zug-based company operates under the brand PlatinCoin. It also transacts blockchain wallet and registered coins on Coinmarketcap.
Security agency in top gear
The warning is another display of the top-notch security system in Germany. The German watchdog has stepped up their game and is going after all illegal cryptocurrency brokers. The Federal Financial Supervisory Authority (BaFin) also further advised the public. The public is cautioned to always verify the company’s identity. This includes identity details and country of establishment among others. They warn the public to never trust a company that cannot be clearly identified.
The risk in a booming industry
The Federal Financial Supervisory Authority (BaFin) has supervised the financial market as part of its duties. It also enforces compliance with rules and regulations. In the recent past, the Federal Financial Supervisory Authority (BaFin) has issued a series of advisories. Recently, it announced specific details about its retail forex and CFDs trading stance. The German watchdog focuses on brokers that do not provide negative balance protection. It also examines for those that expose clients to unlimited losses.
More risks and scams, caution is required
Due to the current influx of investors, the Federal Financial Supervisory Authority (BaFin) has been wary of the booming nascent industry.
The German watchdog has been hitting hard in its warnings toward investors. It elaborates on the potential risks related to investing in Bitcoin and other cryptocurrencies. Also, BaFin has also issued warnings over ICOs. He informed the public over high risk associated with various unrealistic technological claims and potential scams. The German Independent regulatory institutions continue to be active. It leads in assessment and potential regulation of the cryptocurrency field.
The country officials are also making preparations to ensure the safety of German citizens and investors from around the globe. Recently, at the G20 summit in Argentina. Germany reached a partnership agreement with France to jointly push for Bitcoin regulation.