Bafin, Germany’s biggest financial regulator, has issued out yet another warning over the various dangers that offshore brokers pose. This includes the cryptocurrency sector of the country, which is still a legal gray area, at least for now.
Easytrade55 Branded As Suspect
In particular, Bafin has marked yet another firm with a red flag, warning investors not to get involved with it. This time, the regulator cautioned against a company going by the name of Easytrade55 Ltd, a company illegally running its operations, seeing as it doesn’t hold the proper permissions. Easytrade55 allegedly offers German customers access to CFDs, which in turn gives them exposure to both cryptocurrency and FX instruments, through doing so.
Even without the confirmation from BaFin, Easytrade55 Ltd exudes the trademark aura of suspicion. The kind that always follows companies professional-looking enough not to be denied at first, but claims things that are otherwise suspect. Easytrade55, in particular, offers an auto trading expert adviser that promises a yield of up to 4% every day. Furthermore, the company claims the classic scam of “Foolproof” forex trading strategies that allows risk-free trading.
Preying On The Naive
Through its statement, BaFin explained that Easytrade55 claims to have its base of operations within Frankfurt, but the regulator has deemed this as false. Regardless, BaFin has officially urged the people of Germany to be careful when it comes to choosing an online brokerage to do business with. This includes following the proper processes of verification. This includes confirming the identity of the company, through its country of establishment, details of its identity, and so on, and never to trust a company that cannot be clearly identified.
In order to help prevent companies like Easytrade55 to swarm out of the woodwork, BaFin had issued a range of guidelines to help steer potential investors in the right path. This includes urging wariness when it comes to promises of high returns, as this should be the first red flag. BaFin reminded everyone that if something sounds too good to be true, it very often is.
Trying To Ensure Investor Safety
In a bid to try and keep up to date when it comes to the rise of crypto, Bafin has been steadfast in the number of warnings it’s given to investors. While not against the crypto industry, the regulator plans to ensure German investors know the risks associated with crypto. This is especially true, considering the entire industry halved in value amid the coronavirus scare.