German Federal Financial Supervisory Authority has ordered partial cessation of activities by U.K.-based crypto -related firm Finatex Ltd.

A British-crypto company has attracted the scrutiny of Germany’s financial watchdog due to regulatory concerns.

The British firm, Fanatex LTD, based in the United Kingdom, has been ordered to immediately restrain itself from offering international ‘proprietary trading.’

BaFin, the federal financial watchdog in Germany, indicated that Finatex LTD, through its trading platform:

“Offers options and contracts for difference (CFDs) on shares, indices, currencies, and commodities. In facilitating customers’ access to the options and contracts offered, the company is conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the German Banking Act (Kreditwesengesetz – KWG) as a service for others in the Federal Republic of Germany. However, it does not hold the authorization required under section 32 (1) of the KWG.”

Apart from offering services against the law, the company has intentionally displayed social media accounts on its website which are non-existence.

Late last year, BaFin warned investors from crypto related investments especially Initial Coin Offerings noting that the investors assume all risks posed by such activities. Therefore, the regulator warns, it is upon the investors to do thorough background checks before investing. BaFin also distanced itself from personal data loss or breach that the investors may encounter.

In June this year, the federal financial regulator intensified its warning against ICOs saying that BaFin is not mandated to guard individual ICO and crypto investors against risks but to provide a comprehensive general ‘financial stability.’

BaFin’s president, Felix Hufeld said that:

“We will not be able to protect every single investor from his fate, and that cannot be the task of state supervision. Once again, the maxim is that we must act prudently or regularly if financial stability as a whole is threatened or if consumers are systematically harmed.”

Also read: Venture capital investor Tim Draper reaffirmed his prediction that the Bitcoin price will reach $250,000 by 2022

Source: https://www.cryptolinenews.com/2018/11/germanys-financial-watchdog/