April 18, 2019, | AtoZ Markets – The German federal financial supervisory authority (BaFin) has recently issued a warning against activities of Orion Service EOOD / Wise Banc. According to the Bafin’s Wise Banc warning, the brokerage company is not authorized to perform investment services. Is Wise Banc scam?
Is Wise Banc scam?
Wise Banc is a CFD, crypto and Forex broker which is owned and operated by Orion Service EOOD, a company located at Popovo Street 10, Lozenetz District, Sofia 1421, Bulgaria. The company is not regulated by a major regulatory agency.
Orion Service’s name also appeared on the PrimeCFDs website, a very similar unlicensed broker that used to offer CFDs and Forex. Several warnings from the brokerage reviewers were obtained regarding PrimeCFD which website is unreachable at the moment. The trading experts suggest that the previously flagged PrimeCFDs changed its name to Wise Banc, another unlicensed brokerage company with Bulgarian origin.
It is worth noting, that Wise Banc doesn’t offer any information about the company’s origin and the amounts needed for an opening account on their platform.
Wise Banc on the national regulators’ radar
BaFin is not the first regulator which have ever flagged Wise Banc activity as a scam.
Less than a year ago, the British Financial Conduct Authority issued a warning against Wise Banc. The UK financial watchdog’s note stated that the firm is not authorized by us and is targeting people in the UK. The broker, which allegedly operates out of Bulgaria, has also been blacklisted by the Bulgarian Financial Supervision Commission (FSC) and New Zealand’s Financial Markets Authority (FMA).
Bafin warns investors about Wise Banc
According to the German financial regulator, Wise Banc offers German customers CFDs that supposedly give them access to Forex and cryptocurrency instruments. BaFin has released several guides to prevent such practices.
The management of the German financial authorities urges potential investors to be wary of promises of disproportionate returns. It says that guaranteed high yields, well above market, are often too good to be true.
BaFin also advised the investor community to always verify company identification data, including country of origin, legal information, and never trust the company if it cannot be clearly identified.
In the warning of Wise Banc, the financial authority advises traders to be cautious, strongly advising against investing through this firm. Anyone who decides to subscribe to an unregulated broker should know that he will not receive the help of financial authorities in the event that such a company turns out to be a fraud.
CFD, Forex, Crypto, and ICOs on the Bafin radar
As an observer of the financial market and a guarantor of compliance with the rules and regulations, BaFin issued a series of recommendations revealing its position regarding Forex and CFD. Watchdog focused on brokers who do not provide protection against negative balance, exposing customers to unlimited losses.
BaFin is also wary of the fast-growing cryptocurrency industry. The German financial watchdog was adamant in its warnings to investors, detailing the potential risks associated with investing in bitcoins and other cryptocurrencies. In addition, BaFin also issued ICO alerts, informing the public about the high risks associated with various unrealistic technological claims and even fraud.
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