November 20, 2019 by Victor
The supervisory authority German financial BaFin has warned investors 5 Capital – a broker Bulgarian, which provides financial products – the fact that the company offers its services without any legal authorization.
BaFin shows rigid to the crypto-business
5 Capital had illegally offered services CFD (Contracts for Difference) designed to inform users about the movements of the prices of virtual currencies. This is the reason why the financial regulator of germany has decreed the cessation of any activity within the German territory.
BaFin pointed out by one other act to be suspicious of 5 Capital : it would have asked its customers to familiarize themselves with a website run by its parent company 21TEX.
Fearing for the fate of investors ‘ risk-taking, the financial regulator German warns them to move away from companies that have attitudes suspicious about their identity.
A new law in force by 2020
The business of crypto-currency operating in Germany will now have to apply for a license from the BaFin to be able to provide their services within the country.
A new regulation on the fight against money laundering, will be enforceable as of next year, which cannot be applied effectively without the regularity of professional licenses.
In fact, derivatives such as those proposed by 5 Capital do not meet these new regulations, but they are still under the competence of the european authority of financial markets according to the type of financial services that it provides, for clients of non-institutional.
Recently, BaFin has also issued a prohibition order against the Foundation Karatbit. According to safe sources, the federal authority has demanded the immediate discontinuation of the practice of such activities without a permit on German soil.
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