The Federal Financial Supervisory Authority (BaFin), an independent German regulatory institution, on Friday red-flagged the activities of Platin Genesis DMCC, a company that appears to be offering cryptocurrency-focused products in Germany without complying with its financial legislation. The Zug-based company, which operates under the brand PlatinCoin, offers a blockchain wallet and registered coin on Coinmarketcap.
This warning is yet another case in which the German watchdog seems to have stepped up their game and gone after illegal cryptocurrency brokers.
BaFin has also advised the public to always verify the company’s identity (identity details, country of establishment, etc.) and to never trust a company if it cannot be clearly identified.
Did COVID-19 Save the Forex Industry?Go to article >>
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 was focusing 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.
Finance Magnates received the following comments from Platin Genesis DMCC:
A few days ago a statement by the German Federal Department for Financial Supervision (BaFin) on regulating the activities of Platin Genesis DMCC in the territory of Germany became public. The Company top management believes that it necessary to make the following statement:
- Platin Genesis DMCC does not do and has never intended to do any banking operations or provide any financial services to third parties either in the territory of Germany or the territories of any other countries.
- In views of this, Platin Genesis DMCC has never applied for a license required to engage in banking operations.
- For this reason, Platin Genesis DMCC is not subject to supervision by BaFin.
- Platin Genesis DMCC does not and has never owned the blockchain fund mentioned in the statement by BaFin.
- We want to draw your attention to the fact that Platin Genesis DMCC has never advertised through its official channels in the social media the Platincoin cryptocurrency fund and the presence of some licenses.
- Platin Genesis DMCC cannot bear responsibility for actions by third parties, who, pursuing their own interests may provide inaccurate information about the activities of our Company.
- All other interpretations or statements related to the BaFin’s stance on the activities of Platin Genesis DMCC are not true to fact. We urge you to use the Company’s official pages to get information and we are always open to comments.