BaFin Orders German Company Crypto.exchange to Halt Operations Immediately

Crypto.exchange, a Berlin-based company, has been advertising a new service, in which it offers to sell clients’ bitcoins across cryptocurrency exchanges and transfer the value in euros to client accounts within 30 minutes of the transaction. BaFin claims that the company is essentially operating a financial commission business without regulatory authorization, and has ordered the company to halt these specific services immediately.

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Crypto.exchange GmbH released a statement on its website claiming that the company had already been audited by BaFin. However, recent complaints made by clients regarding the execution of the services have brought about new scrutiny with regard to Bitcoin to euro exchange services. More specifically, some clients are claiming that they did not receive payment in any form after they had already transferred Bitcoin to the company.

The company’s website is currently down, which raises further suspicion regarding the operation. According to Bloomberg, the company has been unreachable in any capacity since yesterday (Monday), adding that its phone line “did not seem to be working,” and an email sent to the address used by clients apparently bounced back.

BaFin has been wary of the booming cryptocurrency industry. The German regulatory watchdog has been adamant in its warnings toward investors, elaborating on the potential risks associated with investing in Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. 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 Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of the cryptocurrency field. The country’s officials are taking steps to ensure the safety of German citizens and of investors from around the globe. More recently, Germany partnered with France to jointly push for Bitcoin regulation, which will be discussed at the next G20 summit in Argentina.