BaFin has highlighted that CoinsTrades has not been granted authorisation to conduct banking business or provide financial services. German regulator clarified that the company not supervised by BaFin.
BaFin stated that based on CoinsTrades website, coinstrades.com, the company is conducting banking business and providing financial services in Germany without the required licence.
Under the German Banking Act (Kreditwesengesetz – KWG), companies conducting banking business or provide financial services in Germany are required to have an authorisation.
BaFin stated:
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 identify fraud attempts at an early stage.
Earlier this month, the new president of BaFin, Mark Branson, promised to focus on bolstering supervision in Europe.
