BaFin Warns CoinBene

Germany’s BaFin Issues a Warning Against CoinBene Exchange

BaFin (Federal Financial Supervisory Authority), the financial regulator of Germany issued a warning against an 8th biggest crypto exchange, CoinBene and stated that the exchange is not registered in Germany’s commercial register and hasn’t acquired a license for trading digital assets as Germany’s Banking Act requires.

The financial watchdog claimed that the exchange has been using freelance digital traders for the trading of virtual assets. As indicated by the Banking Act of Germany, trading of the virtual assets needs proper approval of designated authority organisations, since they come under the umbrella of financial instrument.

In the meantime, CoinBene, on its official Twitter handle, refused all the rumours about its existence in Germany and using freelancers for cryptocurrency trading.

CoinBene attempted to cover up an alleged hack previously. It even refuted claims of outward transactions of funds and claimed it to be the result of the scheduled maintenance. Data analysts from Blockchain company Elemtus claimed that those outward transactions had been consistent with the hack.

A study from Bitwise Asset Management based in San Francisco recently made claims about crypto exchanges and stated that unregulated exchanges such as CoinBene expand the trading volume in comparison with the regulated exchange such as Coinbase. As indicated by the study, nearly 95% of all reported trading is generated artificially.