The Federal Financial Supervisory Authority in Germany, more commonly referred to as BaFin, has published a statement on its website this Friday which orders the discontinuation of cross-border investment advice and proprietary trading by GPay Ltd.
According to the statement released today by the German financial regulator, the decision was made on February 26, 2019, and orders the company to immediately stop its cross-border investment advice.
GPay, which is based in Slough, United Kingdom, operates a trading platform that offers foreign exchange (forex) and contracts for difference (CFD) on cryptocurrencies, currencies, commodities, indices, and equities.
The company, which provides its services through three websites – www.xtrader-fx.com, www.xtraderfx-com, www.xtraderfx.net, has been offering investment advice and proprietary trading without the proper authority, the regulator states.
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GPay Ltd Responds to BaFin Accusations
When trying to access the www.xtrader-fx.com website, instead of being directed to the website, you are instead shown a “message to customers” which states:
“In recent days, the authorities have been investigating the company’s operations. We are confident that the actions we have performed are immaculate and after this investigation we will be given the opportunity to serve you and provide you with fast and safe service as in the past. We cooperate with the authorities and are confident that the findings of the investigation will lead to the conclusion that we acted flawlessly.”
“During this interim period we will continue to provide you with technical support and updates on all events, especially updates regarding the state of the investigation and its results. We are here to serve you.”
According to the German watchdog, a larger number of “potentially dubious” trading platforms have been entering the market in recent months. As Finance Magnates reported, BaFin has issued a similar warning like the one today, but instead to Euro Wealth OÜ, an Estonian-based company which claims to operate in the financial services industry.