German Financial Authority Warn Users against Unauthorized Crypto Firms

Dec 2, 2018 at 18:30 Update Date :Dec 21, 2018 at 11:54 UTC

The Federal Financial Supervisory Authority (BaFin), an Independent German regulatory institution, has red-flagged the unauthorized activities of Platincoin. The firm has allegations of issuing unauthorized cryptocurrency products without considering the financial laws.

The independent financial regulatory institution, on Friday, raised a red flag to the activities of Platin Genesis DMCC. The company neglected the legal laws while offering crypto products; blockchain wallet, and registering crypto coin on a platform like CoinMarketCap. The firm is operated under a brand name PlatinCoin. PlatinCoin deals with blockchain wallet and other coins registered on CoinMarketCap.

Financial Authorities in Action

The German financial authorities are undergoing an overall check on all the illegal activities. This warning is a sign of top-level security in the country. The Federal Financial Supervisory Authority (BaFin) has also advised the people to play safe. As per the security note, they should always verify the firm first; considering the identity details and country of establishment. Further, they advised not to trust a company which is not verified completely.

The Federal Financial Supervisory Authority (BaFin) is enforcing strong rules and regulations as a part of its market duty. The authority has enforced a series of advisories which also includes the retail forex and CFDs trading stance. The regulation is also keeping an eye on the brokers that do not provide negative balance protection. Other illegal entities which lead people to unlimited losses are also under the regulation check of the Federal Financial Supervisory Authority (BaFin).

Risks in Crypto World

The German watchdog is also very strict against the investors. This is because of the higher risk of losses in the cryptocurrency market. The authorities have issued warning over the Initial Coin Offerings (ICOs), due to risks involves in Bitcoin and other Altcoins. Moreover, the BaFin highlighted the potential scams in the crypto industry. The German Independent financial institutions are active these days, which may result in putting more rules and regulations in the crypto field.

The government is also preparing to ensure the safety of the citizens and crypto investors in the world. In the G20 summit which held in Argentina, Germany partnered an agreement with France to enhance safety in Bitcoin.

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