The Federal Financial Supervisory
Authority (BaFin), Germany’s financial industry regulator, on Friday announced
that it has investigating the Cayman Island branch of LiquiTrade Limited.
The German regulator said the company has
not been licensed under the German Banking Act “to conduct banking business or
provide financial services”. BaFin added that the company is also not under its supervision.
“Based on the content of its website
latoken.com, facts justify the assumption that LiquiTrade Limited operates
illegal banking and financial services in the Federal Republic of Germany,” the
German regulator explained.
BaFin launched a
similar investigation on UpbitFX Exchange Limited earlier in April, noting that the website
is not authorized or regulated by it.
Banking in Germany
According to BaFin, companies that want to
engage in banking or other financial services are required to be
licensed under the German Banking Act.
The regulator, however, noted that
companies trade without getting the required permission.
BaFin also warned individuals against
accepting supposedly lucrative job offers to work as financial agents.
The market supervisor noted so-called ‘financial agents’ can be prosecuted for money laundering and unlawful
provision of financial services.
In June, the regulator warned against a
lucrative ‘crypto assistant’ job offer supposedly from CWE Capital Holdings
GmbH.
BaFin noted that CWE Capital Holding is
not the operator of cwe-capital.com, the website behind the job offer.
It also warned at the time that hired ‘crypto
assistants’ could be prosecuted.
“BaFin , the Federal Criminal Police
Office and the State Criminal Police Offices recommend extreme caution and
thorough prior research to avoid fraud when investing on the internet,” the
regulator said, speaking on the new investigation.
Meanwhile, Financial Magnates reported
that BaFin on Thursday disclosed that it has
penalized multinational investment bank, the Bank of America (BofA), according to a Reuters report.
The German regulator fined BofA
$5.28 million for delays in reporting voting rights notifications.
The Federal Financial Supervisory
Authority (BaFin), Germany’s financial industry regulator, on Friday announced
that it has investigating the Cayman Island branch of LiquiTrade Limited.
The German regulator said the company has
not been licensed under the German Banking Act “to conduct banking business or
provide financial services”. BaFin added that the company is also not under its supervision.
“Based on the content of its website
latoken.com, facts justify the assumption that LiquiTrade Limited operates
illegal banking and financial services in the Federal Republic of Germany,” the
German regulator explained.
BaFin launched a
similar investigation on UpbitFX Exchange Limited earlier in April, noting that the website
is not authorized or regulated by it.
Banking in Germany
According to BaFin, companies that want to
engage in banking or other financial services are required to be
licensed under the German Banking Act.
The regulator, however, noted that
companies trade without getting the required permission.
BaFin also warned individuals against
accepting supposedly lucrative job offers to work as financial agents.
The market supervisor noted so-called ‘financial agents’ can be prosecuted for money laundering and unlawful
provision of financial services.
In June, the regulator warned against a
lucrative ‘crypto assistant’ job offer supposedly from CWE Capital Holdings
GmbH.
BaFin noted that CWE Capital Holding is
not the operator of cwe-capital.com, the website behind the job offer.
It also warned at the time that hired ‘crypto
assistants’ could be prosecuted.
“BaFin , the Federal Criminal Police
Office and the State Criminal Police Offices recommend extreme caution and
thorough prior research to avoid fraud when investing on the internet,” the
regulator said, speaking on the new investigation.
Meanwhile, Financial Magnates reported
that BaFin on Thursday disclosed that it has
penalized multinational investment bank, the Bank of America (BofA), according to a Reuters report.
The German regulator fined BofA
$5.28 million for delays in reporting voting rights notifications.
