Germany’s watchdog BaFin has published a statement warning of the activities of BitcoinTradeRobot, a company that appears to be offering cryptocurrency-focused trading signals without complying with its financial legislation.
In a short description of the company’s activities, the financial regulator noted that BitcoinTradeRobot offers German customers the opportunity to participate in “the alleged automated trading of Bitcoin against legal currencies.”
In turn, the company positions itself as a premium operator of automated bitcoin market trading software, which generates real signals and executes the trades automatically. The firm evidently does not possess any regulatory status at any jurisdiction.
BaFin, the federal financial watchdog in Germany, also indicated that BitcoinTradeRobot displays address details on its website which are non-existence.
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This warning is yet another case in which the German watchdog seems to have stepped up their game and gone after illegal cryptocurrency brokers.
Wary of Booming Crypto Industry
In its capacity of supervising the financial market and enforcing compliance with rules and regulations, BaFin issued a series of advisories in recent years, most recently when it announced specific details about its retail forex and CFDs trading stance. The watchdog focussed on brokers that do not provide negative balance protection, exposing clients to unlimited losses.
In addition, BaFin has been wary of the booming cryptocurrency industry. The German 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 investors from around the globe. More recently, Germany partnered with France to jointly push for Bitcoin regulation, which was discussed at the G20 summit in Argentina.