BaFin Says FrankfurtFX Unlawfully Targets Germans
- FrankfurtFX claims that it offers powerful strategies that make trading with them outstandingly risk-free.
Germany’s top financial regulator today warned of the dangers posed by offshore brokers that continue to chase Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term business, including within the gray area of the country’s cryptocurrency sector.
BaFin has specifically marked another firm with the red flag. The independent regulator highlighted that a company called FrankfurtFX is running an illegal business while having not acquired proper authorization. The firm under BaFin’s firm offers German customers CFDs that allegedly give them exposure to FX and cryptocurrency instruments.
According to the BaFin’s intel, the regulator suspects FrankfurtFX to be a suspicious company as they use contract documents entitled “Agreement - FrankfurtFX. About risk-free investment ”, which are marked with the BaFin logo. This gives the impression that it is legitimized in the Germany, which has never been true.
The company goes even far with its pledges on its website, stating that it offers powerful strategies that make trading with them outstandingly risk-free.
According to the watchdog, FrankfurtFX claims to be located in Frankfurt with offices in Germany, Austria and Switzerland, which seems untrue. Either way, the financial regulator further urged its citizens to be careful and follow due verification processes, check the company’s identity (identity details, country of establishment, etc.), and never to trust a company if it cannot be clearly identified.
BaFin turns eye to crypto
To prevent such practices, BaFin issued several guidelines that encourage potential investors to be wary of promises of disproportionate returns. A guaranteed investment with a high return that considerably exceeds the market return is often too good to be true, it says.
In an attempt to keep up with the rise of the crypto market, including the number of trading platforms and users, BaFin has been adamant in its warnings toward investors, elaborating on the potential risks associated with the booming industry.
Crypto firms operating in Germany have to apply for a license to the nation’s financial watchdog BaFin since the end of 2019 when the new Anti-Money Laundering (AML) Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) regulations came into effect. Although derivatives referencing cryptoassets would not fall under this suggestion, they remain subject to ESMA’s current restriction and any future proposals by the BaFin regarding the sale of these instruments to retail investors
Germany’s top financial regulator today warned of the dangers posed by offshore brokers that continue to chase Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term business, including within the gray area of the country’s cryptocurrency sector.
BaFin has specifically marked another firm with the red flag. The independent regulator highlighted that a company called FrankfurtFX is running an illegal business while having not acquired proper authorization. The firm under BaFin’s firm offers German customers CFDs that allegedly give them exposure to FX and cryptocurrency instruments.
According to the BaFin’s intel, the regulator suspects FrankfurtFX to be a suspicious company as they use contract documents entitled “Agreement - FrankfurtFX. About risk-free investment ”, which are marked with the BaFin logo. This gives the impression that it is legitimized in the Germany, which has never been true.
The company goes even far with its pledges on its website, stating that it offers powerful strategies that make trading with them outstandingly risk-free.
According to the watchdog, FrankfurtFX claims to be located in Frankfurt with offices in Germany, Austria and Switzerland, which seems untrue. Either way, the financial regulator further urged its citizens to be careful and follow due verification processes, check the company’s identity (identity details, country of establishment, etc.), and never to trust a company if it cannot be clearly identified.
BaFin turns eye to crypto
To prevent such practices, BaFin issued several guidelines that encourage potential investors to be wary of promises of disproportionate returns. A guaranteed investment with a high return that considerably exceeds the market return is often too good to be true, it says.
In an attempt to keep up with the rise of the crypto market, including the number of trading platforms and users, BaFin has been adamant in its warnings toward investors, elaborating on the potential risks associated with the booming industry.
Crypto firms operating in Germany have to apply for a license to the nation’s financial watchdog BaFin since the end of 2019 when the new Anti-Money Laundering (AML) Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) regulations came into effect. Although derivatives referencing cryptoassets would not fall under this suggestion, they remain subject to ESMA’s current restriction and any future proposals by the BaFin regarding the sale of these instruments to retail investors