BaFin Launches Investigation against UpbitFx Exchange

The German financial regulator, BaFin, announced on Monday a formal investigation of UpbitFx Exchange ltd. According to the press note, the platform is not authorized to conduct business or provide financial services in Germany.

BaFin says it has reason to suspect that the platform is used to provide banking services and financial services without the necessary authorization based on the contents of the website upbitfxexchange.com and information and documents available to BaFin.

“In several places on its website, the company claims to be regulated by BaFin. This claim is not true. In addition, the platform makes reference to the website nsbroker.com in several places. This is the website of NSFX Limited, an institution that is authorized in Malta and registered with BaFin as a cross-border service provider under section 74 of the WpIG,” BaFin noted.

UpbitFx Exchange ltd. and NSFX Limited have no connection to each other. NSFX Limited is, therefore, an alleged victim of identity theft. UpbitFx Exchange Ltd is the main name by which the website’s operator refers to itself on upbitfxexchange.com. In addition, it is known as EM Ltd. in certain locations. According to the website, the company has offices in the United States and Malta.

“BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA), and the German state criminal police offices (Landeskriminalämter) recommend that anyone seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to avoid becoming the victim of fraud,” the watchdog warned.

BaFin's Advice on Social Media Tips

Recently, BaFin issued a warning on crypto trading advice on social media. Although there was no direct reference to social media channels, Telegram is one of these sources.

BaFin did provide its principles for any investor that wishes to use social media for investment tips.

The number of followers, likes, or positive feedback are not valid indicators, it said. They do not reflect the performance of the investment tips. It is very easy to manipulate results on social media. Positive feedback or references related to investment success stories can be fictionized and produced at the author’s request.