On May 28, the German financial regulator, Federal Financial Supervisory Authority (BaFin), issued a public warning about cryptocurrency exchange CoinBene.

According to the German financial watchdog, it has been recruiting freelance crypto traders paid based on commission. Federal Financial Supervisory Authority said that, since crypto asserts are financial instruments, to trade them requires authorization under Kreditwesengesetz (KWG) or Germany’s Banking Act.

The Cryptocurrency exchange, CoinBene, is not listed in Germany’s commercial register since it hasn’t obtained proper licensure to trade crypto assets in the country as required by KWG. Earlier, CoinBene had responded to inquiries about its presence in Germany, and it denied the claims of hiring freelance traders.

An official tweeter post, stated:

“We received numerous inquiries regarding our alleged hiring in Germany. But CoinBene is not planning to open any office nor hiring any representative in Germany. Nonetheless, we would like to thank those who actively reached out to us for your concern and understanding.”

In a previous report, CoinBene had been suspended for covering up a hack, claims that they have since denied stating that the flow of the outgoing funds was as a result of ongoing maintenance.

Data scientists at a blockchain infrastructure firm released details about the outgoing transactions which were similar to those that would be seen in a hack. However, the analyst said that their finding did not prove CoinBene claims.

The CEO of Howdoo, David Brierley, claims to have lost 18.4 million of the company’s token uDOO ($209,000) in the process and is seeking to file a class action suit against the exchange.

At press time, CoinBene is the eighth largest cryptocurrency exchange by adjusted trade volume. According to Coinmarketcap data, CoinBene’s current trade volume is $1.63 billion.

Do you think the Germans allegations about CoinBene are true?

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