BaFin to Investigate blockchains.de

The German financial regulator, BaFin, announced a formal investigation against blockchains.de, a trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term on Wednesday. According to the watchdog, the firm’s operators do not hold authorization under the KWG to conduct banking business or provide financial services in Germany.

Moreover, blockchains.de is not regulated by BaFin. The trading platform website states that the laws governing it are the Estonian ones, although its business address is located in London, United Kingdom.

“Based on the contents of the website blokchains.de, on the use of the top-level domain ‘de’ and on information and documents available to BaFin, there are grounds to suspect that the platform is being used to conduct banking business and/or to provide financial services in Germany without the required authorization. On blokchains.de, the operator of the website only refers to itself using the name Blokchains,” the authority noted.

The KWG requires authorization from companies conducting banking business in Germany or providing financial services. But, some companies do not have such authorization.

Investigation against UpbitFx Exchange

Recently, BaFin announced a formal investigation of UpbitFx Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term ltd. NSFX Limited and UpbitFx Exchange Ltd. have no relationship. Therefore, NSFX Limited has allegedly been the victim of identity theft. On upbitfxexchange.com, the website’s operator goes by the name UpbitFx Exchange Ltd. In certain countries, it goes by the name EM Ltd. The company’s website indicates that it has offices in the United States and Malta.

In February, BaFin issued a warning regarding crypto trading advice on social media. Telegram was mentioned as a source, even though social media channels were not directly mentioned.

BaFin’s principles can be used by any investor who wishes to use social media for investment tips.

The number of followers, likes, or positive feedback is not a reliable indicator, the report said. “They do not reflect the performance of the investment tips. It is very easy to manipulate results on social media. Positive feedback or references related to investment success stories can be fictionized and produced at the author’s request,” BaFin pointed out.