Germany’s financial regulator BaFin has advised investors to be careful about accepting the promises of 10Cryptomarket with open hands. The regulator has been issuing several guidelines to help investors stay out of fraudulent or ill-fated crypto investment schemes that promise unusually high returns.
The regulator has warned investors to be wary of the dangers of investing with offshore brokers offering mouthwatering returns to lure them to invest within the gray area of the country’s crypto sector.
Yesterday, Bafin pointed at another crypto company with a red flag. It called out 10Cryptomarket who may be operating an illegal business and not fully accredited to carry out business in the country.
The company promises CFDs that supposedly give investors cryptocurrency and FX instruments.
10Cryptomarket doesn’t have operational approval
The German top regulator has always been upfront with information about unscrupulous and illegally operating businesses in the country. BaFin said the company or its platform doesn’t hold the authorization required to operate FX and cryptocurrency business in the country
“Neither the trading platform nor its operator hold the authorization required under section 32 (1) of the KW,” the statement reads.
According to the regulator’s intelligence report, 10Cryptomarket’s business is suspicious as it uses contract documents inscribed with the BanFin logo, whereas it hasn’t received the required approval to operate in the country.
The firm also tries hard to convince traders on its website, stating that it provides top strategies that make trading and investing with them absolutely risk-free.
According to BaFin, this lofty promise, along with the registration issue, are two signs that investors may be ripped off when they choose the company.
According to the reports provided by the regulator, 10Cryptomarket claims to have an operational base in the country, with several offices in Moscow, Singapore, Zurich, London, which is likely false.
That’s why the financial watchdog is urging the citizens to be wary of the company and carry out due verification process before engaging in any business dealings with them. Prospective investors should verify the firm’s identity, including their country establishment and identity details before trusting them. If any of this information is not clear to them, BaFin advice to stay away from the company.
BaFin picks special interest in crypto investment
The decentralized and anonymous nature of crypto trading makes it a big issue for regulators. As a result, BaFin is seriously campaigning and sensitizing investors on the dangers of investing in businesses that promise unbelievable returns within a short time. The regulator warns investors to be wary of the booming crypto industry, and do business with only those firms who are dully registered with German financial authorities.