Germany’s federal financial supervisory authority (BaFin) today warned investors of the activities of Orion Service EOOD / Wise Banc, which, according to the independent regulator, is not authorized to perform investment services.
In a short description of the company’s activities, the financial regulator noted that Wise Banc offers German customers CFDs that allegedly give them exposure to FX and cryptocurrency instruments.
To prevent such practices, BaFin issued several guidelines which 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.
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.
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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.
BaFin Turns Eye to Crypto
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 of the high risk associated with various unrealistic technological claims and even scams.
The German watchdog encourages traders or those considering online trading to exercise caution, strongly advising against funding an account or investing via this specific company. Anyone who chooses to sign up with the impostor should bear in mind that they will not receive the financial authorities’ assistance should things go awry.