BaFin Launches Investigation against BitcoinWelt

Germany's financial regulator says BitcoinWelt is not authorized nor supervised by the local authorities.

BaFin, the German financial market regulator, announced on Friday that BitcoinWelt is under investigation for unauthorized banking and financial services activities in the country pursued by the website. According to the warning, is not supervised by the German watchdog.

“Providers of banking or financial services in Germany require a permit under the KWG. However, some companies act without the required permission,” BaFin noted. However, the regulator did not reveal further details on the investigation. The website claims to offer forex and CFDs trading services as well and is available in English and German.

As of press time, the site remains operational, although its template seems to be suffering from technical glitches because the information shown does not have a proper design, even in hiding the logo. The BaFin, the Federal Criminal Police Office (BKA), and the State Criminal Police Office cautioned people to do their due diligence before investing on such platforms.

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Recent BaFin Regulatory Actions

Recently, Germany’s financial watchdog launched an investigation against the trading platform operated by Flab Group LTD. The trading platform is not regulated by the German authorities and would be offering unauthorized banking and financial services within the country, which is the same situation with BitcoinWelt.

The firm behind the website is licensed under the jurisdiction of St. Vincent and the Grenadines to provide banking activities. However, the regulator stated it does not automatically grant the company the proper legal power to offer such services in Germany.

In March, BaFin issued a fresh consumer warning against cryptocurrencies. “Despite recent price records, virtual currencies such as Bitcoin and other crypto values ​​are highly risky and speculative investments,” the regulator warned. BaFin’s warning came days after the European Supervisory Authorities (ESA) cautioned investors about the risks in crypto investments. The German watchdog earlier warned against digital assets in January when the crypto prices were soaring high.

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