BaFin Orders German Company Crypto.exchange to Halt Operations Immediately

The German regulator claims that the company has been offering Bitcoin exchange services without regulatory permission.

Crypto.exchange, a Berlin-based company, has been advertising a new service, in which it offers to sell clients’ bitcoins across cryptocurrency exchanges and transfer the value in euros to client accounts within 30 minutes of the transaction. BaFin claims that the company is essentially operating a financial commission business without regulatory authorization, and has ordered the company to halt these specific services immediately.

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Crypto.exchange GmbH released a statement on its website claiming that the company had already been audited by BaFin. However, recent complaints made by clients regarding the execution of the services have brought about new scrutiny with regard to Bitcoin to euro exchange services. More specifically, some clients are claiming that they did not receive payment in any form after they had already transferred Bitcoin to the company.

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The company’s website is currently down, which raises further suspicion regarding the operation. According to Bloomberg, the company has been unreachable in any capacity since yesterday (Monday), adding that its phone line “did not seem to be working,” and an email sent to the address used by clients apparently bounced back.

BaFin has been wary of the booming cryptocurrency industry. The German regulatory watchdog has been adamant in its warnings toward investors, elaborating on the potential risks associated with investing in Bitcoin and other cryptocurrencies. Moreover, BaFin has also issued warnings over ICOs, informing the public over high risk associated with various unrealistic technological claims and even scams.

Germany continues to be an active leader in its assessment and potential regulation of the cryptocurrency field. The country’s officials are taking steps to ensure the safety of German citizens and of investors from around the globe. More recently, Germany partnered with France to jointly push for Bitcoin regulation, which will be discussed at the next G20 summit in Argentina.

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