German Financial Regulator BaFin Shuts Down Activity of British Crypto-Related Firm

The German Federal Financial Supervisory Authority (BaFin) has ordered partial cessation of activities by U.K.-based crypto-related firm Finatex Ltd., according to an official announcement published on BaFin’s website on Friday, Nov. 9.

According to the BaFin’s notice, reportedly dated Oct. 2, Finatex Ltd. is ordered to “immediately” stop offering cross-border proprietary trading on its trading platform, Crypto-Capitals. According to BaFin’s announcement friday, the firm must cease trading since its activity is not approved by German financial legislation, including the German Banking Act.

In a short description of the company’s activities, the financial regulator noted that Crypto-Capitals offers “options, contracts for difference (CFDs) on shares, indices, currencies and commodities.” In turn, the company positions itself as a “premium cryptocurrency trading platform operator.” The firm also evidently does not possess an account on any of the social networks listed on its website.

Previously, BaFin has addressed the cryptocurrency industry with public warnings, particularly focusing on Initial Coin Offering (ICO) projects. In late 2017, Germany’s major financial regulator warned investors about the risks of investing in ICO tokens, claiming that ICO investors take all associated risks upon themselves due to the “lack of legal requirements and transparency rules” in the industry.

In February of this year, BaFin clarified obligations for ICO issuers, following “increased queries” about ICO tokens, with operators specifically inquiring “whether the underlying tokens, coins or cryptocurrencies behind so-called ICOs are viewed as financial instruments within the area of securities supervision.”

Most recently, last month BaFin urged the global community to combine efforts in order to regulate the ICO industry, despite uncertainty as to whether ICOs will remain a “niche issue,” or become a “standard part of the financial economy.”

Prior to that, in June 2018, BaFin’s President stated that the main mission of the agency is not protecting individual retail investors, but rather the preservation of general financial stability.

Original story and image from: https://cointelegraph.com/news/german-financial-regulator-bafin-shuts-down-activity-of-british-crypto-related-firm

 

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