BaFin orders Crypto Exchange firm in Germany to stop brokerage operations

BaFin orders Crypto Exchange firm in Germany to stop brokerage operations following the complaints from users stating that they did not receive any money back from the entity. What do we know about the firm?

30 January, AtoZForex The primary regulator of Germany, German Financial Supervisory Authority (BaFin) has required a Berlin-based exchange, GmbH to stop operating as a financial brokerage. The order from the German watchdog was issued right after the regulator has spotted that the exchange stated on its website that it would sell clients’ Bitcoins for euros and sell them on a stock exchange.

BaFin orders Crypto Exchange firm in Germany to stop brokerage operations

According to the official regulatory statement, the exchange is operating online via The entity also claims that the purchase price would be transferred to the investors within 30 minutes, says BaFin.

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The regulator also highlights that the financial commission business operated by GmbH has no license from the regulator. BaFin notes it took the decision after users stated they did not receive any money for the cryptocurrency that they transferred to the firm.

It appears that the official website of the firm is now down. Also, according to some of the media reports, all emails hat are being sent to an address previously stated in the contact information are bouncing back. Reports also state that company's phone line is not operative.

OneCoin German Partner Banned

Earlier in April 2017, BaFin has shut down a payment processor that is linked to OneCoin cryptocurrency scheme. One Coin is a digital currency service that has been facing numerous allegations of fraud.

In July 2016, Belgian regulator issued a warning against OneCoin. In September 2016, the UK financial regulator FCA warned investors against using OneCoin services. According to the BaFIN announcement OneCoin German Partner IMS International Marketing Services GmbH has been Banned in Germany due not to having the necessary licensing.

Afterward, BaFin has issued a cease-and-desist orders to two holding companies that are connected to OneCoin. That time, BaFin has ordered the firms to "dismantle their internet based OneCoins trading system."

"The BaFin order is immediately enforceable by law, but not yet final," the release from the German regulator stated.

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