Germany’s BaFin Orders CFFDbank to Cease Operations

BaFin advised the public to verify the company’s identity and to never trust a company if it cannot be identified.

Germany’s federal financial supervisory authority (BaFin) on Monday warned investors of the activities of CFFDbank, which, according to the independent regulator, is not authorized to perform investment services.

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.

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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 has 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 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. Last year, Germany partnered with France to jointly push for Bitcoin regulation, which was discussed at the G20 summit in Argentina.

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.‎

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