Germany’s BaFin Says Trading Platform GTS Financial Not Authorized

Germany’s BaFin Says Trading Platform GTS Financial Not Authorized

The Federal Financial Supervisory
Authority (BaFin), Germany’s financial industry regulator, announced
on Monday that trading platform provider GTS Financial LLC is not authorized to operate
in the country.

BaFin explained that GTS Financial
contacts German investors and recommends specific shares without being permitted under the German Banking Act to offer banking or financial services to Germans.

The financial markets regulator added that
the company is not under its regulatory purview.

“The information provided on the website
gtsfinancial.net and the information and documents available to BaFin give
reasonable grounds to suspect that the platform is being used to conduct
banking business and/or provide financial services in Germany without the
required authorisation,” BaFin said.

In addition, the regulator noted that claims by
GTS Financial that it is supervised by the US Securities and Exchange
Commission cannot be verified.

“The company mentions two business
addresses in the USA on its
website. Moreover, the website refers to additional alleged business addresses in
Denmark and Belgium,” BaFin said.

The German regulator advised the public
to check if a financial services firm has been authorized through its database of companies.

“BaFin, the German Federal Criminal Police
Office and the German state criminal police offices recommend that consumers
seeking to invest money online should exercise the utmost caution and do the
necessary research beforehand to avoid becoming the victim of fraud,” BaFin said.

LiquiTrade

BaFin’s latest regulatory flagging of GTS Financial follows
its investigation on LiquiTrade Limited, Cayman Islands, last month.

The market supervisor noted that the
company is not authorized under the German Banking Act and is neither under its
supervision.

“Based on the content of its website
latoken.com, facts justify the assumption that LiquiTrade Limited operates
illegal banking and financial services in the Federal Republic of Germany,” the
watchdog explained.

Meanwhile, BaFin recently clarified that
deposit insurance protection in the country’s mainstream financial industry
does not cover losses related to cryptocurrencies.

“BaFin now points out that crypto-assets
do not fall under the protection of deposit insurance and, as a rule, the
protection of investor compensation does not apply either,” the supervisory
authority noted.

The Federal Financial Supervisory
Authority (BaFin), Germany’s financial industry regulator, announced
on Monday that trading platform provider GTS Financial LLC is not authorized to operate
in the country.

BaFin explained that GTS Financial
contacts German investors and recommends specific shares without being permitted under the German Banking Act to offer banking or financial services to Germans.

The financial markets regulator added that
the company is not under its regulatory purview.

“The information provided on the website
gtsfinancial.net and the information and documents available to BaFin give
reasonable grounds to suspect that the platform is being used to conduct
banking business and/or provide financial services in Germany without the
required authorisation,” BaFin said.

In addition, the regulator noted that claims by
GTS Financial that it is supervised by the US Securities and Exchange
Commission cannot be verified.

“The company mentions two business
addresses in the USA on its
website. Moreover, the website refers to additional alleged business addresses in
Denmark and Belgium,” BaFin said.

The German regulator advised the public
to check if a financial services firm has been authorized through its database of companies.

“BaFin, the German Federal Criminal Police
Office and the German state criminal police offices recommend that consumers
seeking to invest money online should exercise the utmost caution and do the
necessary research beforehand to avoid becoming the victim of fraud,” BaFin said.

LiquiTrade

BaFin’s latest regulatory flagging of GTS Financial follows
its investigation on LiquiTrade Limited, Cayman Islands, last month.

The market supervisor noted that the
company is not authorized under the German Banking Act and is neither under its
supervision.

“Based on the content of its website
latoken.com, facts justify the assumption that LiquiTrade Limited operates
illegal banking and financial services in the Federal Republic of Germany,” the
watchdog explained.

Meanwhile, BaFin recently clarified that
deposit insurance protection in the country’s mainstream financial industry
does not cover losses related to cryptocurrencies.

“BaFin now points out that crypto-assets
do not fall under the protection of deposit insurance and, as a rule, the
protection of investor compensation does not apply either,” the supervisory
authority noted.

Read More

Write a comment

Your email address will not be published. All fields are required