The German Federal Financial Supervisory Authority (BaFin) has issued a warning regarding the website bridgeinvest-market.net, which is allegedly offering financial, investment, and cryptocurrency services without the necessary authorization.
According to BaFin, the website is suspected of violating section 37(4) of the German Banking Act (KWG) and section 10(7) of the Cryptomarkets Supervision Act (KMAG). BaFin emphasizes that any entity conducting banking, financial, investment, or cryptoasset services in Germany must secure prior authorization. This can be verified through BaFin’s public company database. The agency is coordinating with the Federal Criminal Police Office (BKA) and state criminal police offices to address this issue.
The German Crypto Markets Supervision Act (KMAG), which will come into effect on December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It aims to enhance market transparency, operational resilience, and compliance with European crypto regulations. The KMAG mandates that crypto service providers obtain 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 ranks Binance as Europe's safest licensed cryptocurrency exchange due to its regulation in multiple European countries, AES-256 encryption, and the Secure Asset Fund for Users (SAFU) program for user protection. Coinbase ranks second with 98% of assets held offline and licensing by BaFin in Germany. Kraken takes third place 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.
