29 May 2019 14:59, UTC

BaFin, Germany's financial regulator, has issued a public warning concerning cryptocurrency exchange CoinBene on May 28. The regulator claims that CoinBene has been recruiting freelance crypto traders who get paid on commission. BaFin also states that the crypto assets are considered as financial instruments, thus trading them requires authorization under Germany’s Banking Act, or Kreditwesengesetz (KWG).

BaFin stressed that CoinBene is not included in Germany’s commercial register and has not obtained proper licensure for trading crypto assets as required by the KWG. Earlier CoinBene has denied its presence in Germany, and responded that it was not hiring freelancers in its Twitter post:



“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.”

Previously, CoinBene has been suspected of covering up a hack attack resulting in asset losses. The exchange has denied the claims, stating that the outgoing flow of funds was the result of regular maintenance.

Image courtesy of Finance Magnates

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