German Regulator Orders Immediate Halt to Berlin Firm’s Bitcoin-to-Euro Exchange Services
German financial watchdog BaFin has ordered a Berlin-based company to stop offering services for exchanging customers’ Bitcoins to Euros, claiming it has been operating a financial commission business without permission or authorization from the regulatory body.
According to thestatementby the German Federal Financial Supervisory Authority, Crypto.exchange GmbH had been advertising services to sell customers’ Bitcoins on exchanges, and then transfer the gains, in Euros, to the clients’ accounts – all within 30 minutes.
The company’s official website, btc-now.de, also claimed that the firm had been audited by the BaFin. However, the service had come under fire by dissatisfied users online, who claimed they were never paid back after having transferred their Bitcoins to the company.
As perBloomberg, the firm is currently unreachable – its website is down, all emails being sent to an address previously listed in contact information are bouncing back, and the company’s phone line is also not working.
While the crypto boom has been immensely profitable for traders and investors, frauds and scams are also rampant, owing to the unregulated nature of the market. Regulators worldwide have struggled to keep pace and draft appropriate and timely frameworks for cryptocurrency regulation. Prevention of the usage of crypto for illicit activities such as fraud, money laundering, and terrorism financing have been issues of particular concern for authorities.
Germany has adopted a cautious stance on cryptocurrencies. Financial regulators and authorities in the country have beenissuing warningsadvising investors to avoid cryptocurrencies, or at the very least, approach them with caution. The BaFin has also issued an investor warning on initial coin offerings owing to the “substantial risk” involved.
Most recently, Germany has teamed up with France todraft a joint proposalfor cryptocurrency regulation, to be presented at the upcoming G20 Summit in March this year. Speaking about the need to regulate and rein in the burgeoning and unchecked crypto market, the German acting Federal Minister of Finance, Peter Altmaier, said that as authorities, they had “a responsibility towards our citizens to explain and reduce the risks”.
Stay up to date with market trends and exclusive crypto news!
Thanks for subscribing!
You're one step away from getting industry's latest news and updates.
Please check your inbox/spam for a confirmation email and click on the link to confirm your subscription.