LiquiTrade operates ‘illegal banking services’ in Germany, says BaFin

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On Friday, the Federal Financial Supervisory Authority (BaFin), Germany’s financial sector regulator announcement
that he investigated the Cayman Islands branch of LiquiTrade Limited.

The German regulator said the company had not been licensed under German banking law “to carry on 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, the facts support 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 into UpbitFX Exchange Limited earlier in April, noting that the website is neither authorized nor regulated by it.

Bank in Germany

According to BaFin, companies wishing to engage in banking or other financial services must be licensed under German banking law.

The regulator, however, noted that companies are trading without obtaining the required authorization.

The BaFin also warned individuals against accepting supposedly lucrative job offers to work as financial agents.

The market supervisor noted that so-called “financial agents” can be prosecuted for money laundering and illegal provision of financial services.

In June, the regulator warned of a lucrative “crypto assistant” job offer allegedly from CWE Capital Holdings GmbH.

BaFin noted that CWE Capital Holding is not the operator of cwe-capital.com, the website behind the job posting.

He also warned at the time that hired “crypto assistants” could be prosecuted.

“BaFin, the Federal Criminal Police Office and 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 survey.

Meanwhile, Financial Magnates reported that BaFin revealed on Thursday that it had penalized multinational investment bank, Bank of America (BofA), according to a Reuters report.

The German regulator fined BofA $5.28 million for late notification of voting rights notifications.

On Friday, the Federal Financial Supervisory Authority (BaFin), Germany’s financial sector regulator announcement
that he investigated the Cayman Islands branch of LiquiTrade Limited.

The German regulator said the company had not been licensed under German banking law “to carry on 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, the facts support 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 into UpbitFX Exchange Limited earlier in April, noting that the website is neither authorized nor regulated by it.

Bank in Germany

According to BaFin, companies wishing to engage in banking or other financial services must be licensed under German banking law.

The regulator, however, noted that companies are trading without obtaining the required authorization.

The BaFin also warned individuals against accepting supposedly lucrative job offers to work as financial agents.

The market supervisor noted that so-called “financial agents” can be prosecuted for money laundering and illegal provision of financial services.

In June, the regulator warned of a lucrative “crypto assistant” job offer allegedly from CWE Capital Holdings GmbH.

BaFin noted that CWE Capital Holding is not the operator of cwe-capital.com, the website behind the job posting.

He also warned at the time that hired “crypto assistants” could be prosecuted.

“BaFin, the Federal Criminal Police Office and 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 survey.

Meanwhile, Financial Magnates reported that BaFin revealed on Thursday that it had penalized multinational investment bank, Bank of America (BofA), according to a Reuters report.

The German regulator fined BofA $5.28 million for late notification of voting rights notifications.

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