Germany’s Federal Financial Supervisory Authority (BaFin) warned in a December 9 investigation about a Bitcoin exchange, citing that it failed to register under KWG.
BaFin says this Bitcoin exchange offers reasonable grounds to be suspicious
Germany’s financial regulator said in a report released on its official website on Friday that cryptocurrency exchange Rtcoin is not authorized to operate in the country. BaFin states that under section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG), RTCoin is not authorized to conduct banking business under KWG. According to the regulator, the crypto exchange had no registration under KWG.
Die Betreiber folgender Websites handeln ohne die erforderliche Erlaubnis:
▶️rtcoin. org: https://t.co/TqmuOkLO4E
▶️bnbtgroup. com bzw. bnbt-group. com: https://t.co/zstnEsudZL
▶️cardano-capital. de: https://t.co/eafrPI5GPi
▶️fintsunami. com: https://t.co/D3m6BBj5MZ#BaFinwarnt pic.twitter.com/GnDx6tT2KI— Bundesanstalt für Finanzdienstleistungsaufsicht (@BaFin_Bund) December 9, 2022
The regulator further stated that the information provided on the exchange’s website, rtcoin.org, provides reasonable grounds to suspect that RTCoin is conducting a banking business and providing financial services in Germany without the necessary authorization. Companies that run a banking business or provide financial services in Germany have to be authorized under the KWG. However, some companies may operate without the required permit. The regulator publishes information on whether the companies have been authorized or not in BaFin’s company database.
Rtcoin was not authorized by KWG
The German “Kreditwesengesetz” or “Bank Act” regulates how institutions offering financing facilities should conduct their business. The scope of these restrictions also applies to German cryptocurrency exchange sites. It reports that BaFin is not under the control of the exchange, based on information found on the company’s website, Rtcoin. The regulator also recommended that investors take the utmost care to identify fraudulent attempts on a site. He stressed the importance of doing the necessary research beforehand.
German was one of the top 8 service languages of the Bitcoin exchange
German is listed as one of the eight service languages on the crypto exchange’s website. According to the company’s website, the exchange describes itself as the world’s leading cryptocurrency trading system. Headquartered in the UK, Rtcoin claims to be registered in the Cayman Islands.
However, Rtcoin is not listed by the Financial Conduct Authority, which has provisional registration in the UK. The cryptocurrency exchange does not even appear on the FCA’s list of unregistered cryptocurrency businesses. Includes businesses operating in the UK that the FCA is aware of but have not applied for regulatory registration.
cryptocoin.com As you follow, events around FTX have tightened the control of central platforms. Especially in order to ensure investor confidence, stock market reserves gained importance. “The company is not regulated by BaFin,” the regulator said in today’s announcement. The report added:
The information provided on the company’s website, rtcoin.org, gives reasonable grounds to suspect that RtCoin is conducting a banking business and providing financial services in Germany without the necessary authorization.
