Germany warns public about an unauthorized crypto fund

Germany’s BaFin Issues a Warning About an Unauthorized Crypto Fund

The Federal Financial Supervisory Authority of Germany (BaFin) issued a warning on 29th November claiming that a firm called Platin Genesis DCC isn’t authorized or approved by the proper authorities yet.

In its warning, BaFin says that Platin Genesis was advertising a “Platinum Coin Crypto Fund” on social media channels, that it claimed that it was “approved and released by BaFin.” The financial regulators clarify in their statement that this is not true at all.

The firm, Per BaFin, does not have the authority under section 34 of the German Banking act for conducting banking activities or offering financial services. The firm is not even under BaFin’s supervision.

The token of the firm “Platincoin” is listed on CoinMarketCap and is currently trading at $4.48, which is down 1.11% on its daily chart at press time.

In the early November, BaFin ordered a partial cessation of activities of the UK-based crypto-associated firm called Finatex Ltd. This firm was ordered to put an instant halt to cross-border proprietary trading on its trading platform, called Crypto-Capitals.

Finatex Ltd. reportedly provided “commodities, currencies, indices, contracts for difference (CFDs) on shares, and options,” without authorization by the German Banking Act.

The German Federal Financial Supervisory Authority has maintained a hawkish stance toward ICOs and has also called for international regulations in the sector. Felix Hufeld, the chairman of BaFin, last month, said that “the number (of ICOs) and the volume (of money) per ICO are both getting higher. Investors have mostly minimal rights.”

The BaFin Chairman, referencing ICOs, recommend private investors to maintain a strategic distance from such things while adding that discussions on ICO regulations were on their way in multiple international forums.

The truth of the matter is that BaFin claimed that the firm has never registered. Thus, it isn’t permissioned to conduct banking activities or offering financial services.