The German regulators from the federal financial supervisory authority known as BaFin recently flagged the Bulgarian cryptocurrency broker 5 Capital.

As the cryptonews on November 11 showed, the regulator has issued a warning against 5 Capital and barred them from operating in the country since the firm illegally offered Contracts for Difference (CFDs) which were designed to expose clients to the price movements of cryptocurrencies.

What was also discovered by the German regulators was the company and how it provided the service without the necessary license. Per the announcement, the broker is based out of Sofia, the capital of and solicits its users to use a website which was operated by its parent company, 21TEX.

BaFin also recommends investors to check the identity of the companies which are offering the services they use and do not trust companies which cannot be easily identified. As we reported in late July this year, there are new Anti Money Laundering (AML) regulations which will come into effect in next year.

Even though the derivatives such as the ones offered by the firm in question are not falling under this requirement, they are still regulated by the European Securities and Markets Authority as instruments which are offered to retail investors.

German regulators do not stop here. In fact, this was not the only recent action from them. Last week, reports in the news emerged showing that BaFin had issued a cease and desist order to the Karatbit Foundation, urging it to stop unauthorized business in .

For those of you who don’t know, unlike the Euro which is considered fiat money in , Bitcoin (BTC) and other cryptocurrencies are not legal tender. Therefore, there is no legal obligation to accept Bitcoins. Still, this does not stop Germans from buying cryptocurrencies from exchanges like Bitpanda and profiting from their upward movements.

In the Bitcoin and altcoin news today, we can see a slight improvement in the prices. Bitcoin (BTC) is still below $8,600 but some altcoins like Litecoin (LTC), Ethereum (ETH) and EOS (EOS) have posted promising gains – something that could trigger a bullish momentum and reverse the market into a positive trend again.

The post German Regulators Flag Bulgarian Broker For Operating Without License appeared first on DC Forecasts – Leading Digital Currencies.

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Source: https://www.dcforecasts.com/regulation/german-regulators-flag-bulgarian-broker-for-operating-without-license/