The Federal Financial Supervisory Authority (BaFin), an independent German regulatory institution, today issued a warning against the activities of GLSSTOCKS, a company that appears to be offering forex and CFDs in Germany without complying with its financial legislation.
According to the watchdog, GLSSTOCKS is not an authorized investment firm or credit institution in the country and is thus not allowed to provide banking or investment services in or from Germany.
Viberate Teams Up with Blockparty to Deliver World’s First Live Event NFTGo to article >>
In order to prevent such fraudulent practices, BaFin has 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.
In its capacity of supervising the financial markets regarding compliance with the required rules and regulations, BaFin has issued a series of advisories in recent years, most recently when it announced more specifics 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 operates as a watchdog for financial trading, securities and markets in Germany, overseeing a variety of assets and compliance issues for traders and consumers. Today’s warning is the latest initiative in its efforts to clamp down on companies engaging in fraudulent activities.