BaFin or Federal Financial Supervisory Authority of Germany has issued a warning against CoinBene, the crypto exchange. As per BaFin’s report, CoinBene is not registered under Germany’s banking Act and has no license for trading with cryptos. Further, it also says that CoinBene has been recruiting freelance crypto traders. These folks get their commission for trading.

However, CoinBene has rejected such claims through a tweet. It says the firm has no intention to open an office in Germany and is not hiring anyone. Earlier, a report from CoinTelegraph, alleges the exchange of covering up a hack. Again denying the claims, the exchange said the maintenance was being carried out due to the flow of outgoing funds.

This event follows up the Australian Finance regulator issuing a warning against OneCoin. OneCoin has no legal registration in Australia and doesn’t have the Finance Services License. This can be one major issue with crypto exchanges that have no registration within the regions they are operating. If the region has an anti-crypto government, they will outright ban anyone dealing with crypto. It will overall contribute to tarnishing the image of digital money.