Supervisory Authority BaFin Warns Against Dubious Providers And Questionable Financial Products

We are increasingly receiving inquiries from private investors who have made payments via online platforms for the alleged acquisition of crypto currencies or fictitious financial products. Fantasy product names tempt unsuspecting and gullible consumers to supposedly reach for the big money. Advertised with immense returns, the fantasy products in part however simply do not exist.

For the provision of financial services, the creators of such websites claim to have the necessary license in for example Switzerland or Austria or Hong Kong.

In Germany, as of January 1^st, 2020, a license as a financial services institution in accordance with § 32 KWG is required for anyone who offers the safekeeping, management and security of third-party crypto assets or private cryptographic keys that are suitable for holding, storing, or transferring crypto values. Dubious providers are aware of this and are trying to cash in quickly in German-speaking countries.