The Federal Financial Supervisory Authority (BaFin) has issued a warning regarding Edelraum, alleging that the company is offering financial, investment, and crypto asset services without the necessary authorization. This announcement was made in a news release on March 3, 2025.
According to BaFin, the operators of edelraum.com are suspected of providing these services without approval. In Germany, such activities require authorization from BaFin, and consumers can verify a company's status through BaFin’s database. The warning is issued under the German Banking Act and the Crypto Markets Supervision Act.
The German Crypto Markets Supervision Act (KMAG), effective since December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It focuses on market transparency, operational resilience, and compliance with European crypto regulations. The KMAG mandates that crypto service providers secure licenses and maintain robust systems to ensure transparent practices within the sector. This framework supports secure and compliant market operations in alignment with EU standards.
Blockpit's analysis of Europe's safest licensed cryptocurrency exchanges ranks Binance first due to its regulation in multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase takes second place with 98% of assets held offline and licensing by BaFin in Germany. Kraken ranks third by storing 95% of assets in cold wallets and adhering to regulations across the EU and other regions.
BaFin oversees the stability and integrity of Germany's financial system. It supervises banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and other related entities. Its responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing.
