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Germany’s BaFin Shuts Down Crypto-Capitals’ Cross Border Crypto Trading Operations

Cryptocurrency firms are attracting a lot of attention. That is not always a good thing, depending on the company’s business model Crypto-Capitals, a firm specializing in trading products, has been flagged by Germany’s BaFin. The company is selling these trading products without complying with regulatory measures. Crypto-Capitals Runs Afoul in Germany Similar to other European countries, Germany has no active cryptocurrency regulation. That does not mean companies can offer services related to Bitcoin without being regulatory compliant. For Crypto-Capitals, things have gone from bad to worse. The German firm has been ordered to shut down operations by BaFin over regulatory concerns. As part of its service, Crypto-Capitals provides cryptocurrency-oriented trading products. That includes CFDs, a strictly regulated investment vehicle in Germany. However, the crypto firm is not following existing guidelines associated with offering such services. BaFin has now ordered the firm to cease operations until this matter can be resolved. This explosion of crypto activity has caught the attention of Germany’s financial watchdog. BaFin has advised consumers on crypto investments over the past few years. They are also in the process of cracking down hard on any company not following the rules. While Crypto-Capitals is not offering an illegal service, their regulatory compliance leaves much to be desired. Compliance is Critical for all Firms This is another clear warning signs for all cryptocurrency companies. Offering products catering to traditional investors should not be taken lightly. If firms do not comply with local regulations, they will be shut down sooner or later. Crypto-Capitals is just one example of how quickly things can deteriorate for firms skirting the law. Germany does not have the most open-minded approach to Bitcoin. It is one of the few countries around the world where LocalBitcoins is not available. The platform was forced to cease operations several years ago due to regulatory pressure. Despite the setback, other trading platforms still exist in the country to this very day. Warnings issued by BaFin are a positive sign for the industry. If cryptocurrency is set to go mainstream, compliance needs to be the number one priority at all times. There is no reason for service providers to take shortcuts. Avoiding unnecessary scrutiny is always the favorable option. Germany is actively monitoring the cryptocurrency industry for flaws. They also want to have the G20 regulate this industry over the coming years. How important is a clear regulatory framework (and the enforcing of that framework) to the long-term success of cryptocurrencies? Let us know in the comments below. Images courtesy of Shutterstock The post Germany’s BaFin Shuts Down Crypto-Capitals’ Cross Border Crypto Trading Operations appeared first on Live Bitcoin News.
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Crypto Capitals Halts Bitcoin Trading Operations Due to Germany’s BaFin Raising Red Flags

Crypto Capitals is a company that has been offering crypto-trading products to investors in Germany, like CFDs. However, they have made no efforts to follow the financial legislation in the area, which has put it at a major risk. As such, the regulatory institution for Germany, the Federal Financial Supervisory Authority (BaFin) has red-flagged their activity, leaving it as a warning to other investors and companies. In an effort to encourage the public to be more careful in their investments, BaFin took the opportunity to also advise them to take the time to verify the information that a platform provides, like any identifying details or registrations. If a company is unable to be clearly validated as the real thing, then the investor should look elsewhere. This isn’t the first time that the German watchdog has managed to go after the illegal activities of allegedly cryptocurrency brokers. Their role is to monitory the actions that occur in the financial market, while still focusing on compliance with the regulations set forms. There have been many advisories over the years, particularly with the way that it approaches retail forex and CFDs trading. They prefer to focus their attention on the brokers that leave their clients unprotected, and that offer no balance protection. Clearly, with all of the potential for hacking and other damage in the crypto industry, BaFin has been incredibly apprehensive. They continue to warn investors about the immense risks they are taking with any cryptocurrency, even when that crypto asset is 10 years old (Bitcoin). They also go after initial coin offerings (ICOs), which is understandable with the way that many fraudulent companies will steal the users’ fiat funds and disappear without a trace. With their aggressive approach on regulation and protecting citizens, Germany is actively looking to monitor the crypto industry for anything that could put investors at risk. One of their most recent efforts is their collaboration with France to work on Bitcoin regulation. The topic has already been discussed in Argentina at the G20 summit, but there is plenty of opportunity to still make this regulation into a reality.
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German Financial Regulator BaFin Shuts Down Activity of British Crypto-Related Firm

German Financial Regulator BaFin Shuts Down Activity of British Crypto-Related Firm The German Federal Financial Supervisory Authority (BaFin) has ordered partial cessation of activities by U.K.-based crypto-related firm Finatex Ltd., according to an official announcement published on BaFin’s website on Friday, Nov. 9. According to the BaFin’s notice, reportedly dated Oct. 2, Finatex Ltd. is […] Cet article German Financial Regulator BaFin Shuts Down Activity of British Crypto-Related Firm est apparu en premier sur Bitcoin Central.
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German BaFin Regulator Issues ICO Investor Warning, Supports International Crypto Standards

In what appears to be an outright biased move on behalf of the German government, the president of BaFin, Felix Hufeld, has told investors to lay their hands of “ICOs” since they are prone to a lot of financial scandals. However, he did add that he was in favor of creating a “global regulatory framework” for initial coin offerings so that they can become safer for everyone to make use of in the near future. BaFin is an independent institution whose governance is looked after by Germany’s Federal Ministry of Finance. If the agency’s wishes were to come true, ICOs and other similar offerings will start to fall under the supervision of the government— thereby subjecting crypto products to the same international standards as other conventional fiat offerings. With that being said, it still remains to be determined whether it will actually be possible to subject ICOs to the same regulations as fiat currencies, since both of the products seem to offer completely different advantages. In this regard, Hufeld told an established German media outlet that: “We do not want to stifle innovation, but must avert dangers at the same time. For example, it is important for us to take action against money laundering and safeguard privacy rights of investors. In addition, there should be certain minimum standards for the underlying terms of the contract. Therefore, I can only advise private investors to keep their hands off such things”. More on the Matter As things stand, cryptocurrency fundraisers are subject to existing securities laws that are looked over by BaFin. Also worth mentioning is that recently, the Berlin Court of Appeals recently ruled that “Bitcoin is a financial instrument, and thus falls under the purview of BaFin”. In this regard, Hufeld mentioned that the court’s decision has now added further pressure on policymakers to establish guidelines for ICOs and cryptocurrencies ASAP. “Such considerations are necessary for the sole reason that it is necessary to make financial regulation future-proof, also with a view to new technological phenomena such as crypto-tokens. As I have said, international standards seem worthwhile for me, so discussions take place in a variety of international forums.” Final Take After taking into account all that has been happening in Germany, international law firm Reed Smith LLP has advised all budding crypto startups to seek legal authorisation of BaFin before initiating any large monetary ventures— since a failure to comply might lead business owners to pay up a hefty fine or send them to jail for a period of 5 years.
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Investments in Bitcoin [BTC] still remain highly speculative, and total loss is still possible – BaFin President’s speech

Mr. Felix Hufeld, the President of Federal Financial Supervisory Authority [BaFin], talked about Bitcoin and blockchain and compares this infancy of blockchain with the advent of the internet. He says that even Bill Gates at that time did not pay close attention to that new phenomenon. Trying to ensure that you do not fall on your nose might mean that you are crawling on your tummy, he said, quoting Heinz Riesenhuber, speaking about how valuable distributed ledger technology can be, yet it has a darker side as well, mainly the security and anonymity issues. He begins by saying that the most well known blockchain applications are cryptocurrencies like Bitcoin, but he stresses that blockchain extends further. The decentralized nature of this technology lends itself very well to anonymity, making public blockchains vulnerable to abuses such as money laundering or terrorist activities. With countless applications for this technology, there is bound to be issues of this sort. Estonia, the world’s most digitized country, has already integrated blockchain technology in many public administration services, while Switzerland has had a startup since last July, working on land registry entries. How does one deal with the tension between innovation and security? Facing the risks of technology, one can not afford to deregulate their opportunities. Nor can regulators or investors be endangered by the risks of blockchain and cryptocurrency volatility, he said. He reveals that he sees smart contracts as Janus-faced entities, somewhere between hype and success. Yet they have blatant weaknesses that make them inherently susceptible to cyber attacks, an ever-present threat in this digital world. These smart contracts are also not ‘smart’, at least not yet. They are computer codes, with a yes or no output. They can not be expected to retrospectively evaluate their instructions, nor can they ‘judge’ the contract and the principle behind it, making them inflexible. However these smart contracts enable decentralized computer programs, ‘dApps’, which can be revolutionary. Some even consider this model the real economic alternative to the current centralization tendencies of banks. The problem of anonymity is also being solved, with traders being required to identify themselves to meet crypto trading platforms’ requirements, to tackle problems like money laundering. It is indeed a hype, even a bubble, that Bitcoin was priced so high at the end of last year. Investments in Bitcoin still remain highly speculative, and total loss is still possible, he warns. He remembers the time when outmail was delivered by a mailman, and cable and dial telephones populated posh homes. Compare that to today’s smartphones. Perhaps, he muses, the day is not too far away when people look at blockchains and wonder how money transactions were even possible without this technology. The post Investments in Bitcoin [BTC] still remain highly speculative, and total loss is still possible – BaFin President’s speech appeared first on AMBCrypto.
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Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust

Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust Digital currency investment group Grayscale confirmed it had successfully launched its latest fund, dedicated to Stellar’s Lumens (XLM) token, in a tweet Jan. 17. Grayscale, which now operates nine cryptocurrency funds, timed the move to coincide with a change of image for its products, renaming all its […] Cet article Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust est apparu en premier sur Bitcoin Central.
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Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project

CoinSpeaker Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project Until now, everybody has been talking about Bitcoin, the most popular and widely used digital currency. However, Bitcoin is unable to process thousands of transactions a second. Researchers from the Massachusetts Institute of Technology (MIT), UC-Berkeley, Stanford University, Carnegie Mellon University, University of Southern California, and the University of Washington have decided to fix such a weakness and develop a crypto asset better than Bitcoin. The researchers are working together as Distributed Technology Research (DTR), a non-profit organization based in Switzerland and backed by hedge fund Pantera Capital. The first initiative of Distributed Technology Research is the Unit-e, a virtual coin that is expected to solve bitcoin’s scalability issues while holding true to a decentralized model and process transactions faster than even Visa or Mastercard. Babak Dastmaltschi, Chairman of the DTR Foundation Council, said: “The blockchain and digital currency markets are at an interesting crossroads, reminiscent of the inflection points reached when industries such as telecom and the internet were coming of age. These are transformative times. We are nearing the point where every person in the world is connected together. Advancements in distributed technologies will enable open networks, avoiding the need for centralized authorities. DTR was formed with the goal of enabling and supporting this revolution, and it is in this vein that we unveil Unit-e.” According to the press release, Unit-e will be able to process 10,000 transactions per second. That’s worlds away from the current average of between 3.3 and 7 transactions per second for Bitcoin and 10 to 30 transactions for Ethereum. Joey Krug, a member of the DTR Foundation Council and Co-Chief Investment Officer at Pantera Capital, believes that a lack of scalability is holding back cryptocurrency mass adoption. He said: “We are on the cusp of something where if this doesn’t scale relatively soon, it may be relegated to ideas that were nice but didn’t work in practice: more like 3D printing than the internet.” The project’s ideology is firmly rooted in transparency, with a belief in open-source, decentralized software developed in the public interest with inclusive decision-making. The core team of the project is based in Berlin. To solve the scalability problem, DTR has decided to develop the Unit-e with parameters very close to Bitcoin’s design, but many things will be improved. Gulia Fanti, DTR lead researcher and Assistant Professor of Electrical and Computer Engineering at Carnegie Mellon University, commented: “In the 10 years since Bitcoin first emerged, blockchains have developed from a novel idea to a field of academic research. Our approach is to first understand fundamental limits on blockchain performance, then to develop solutions that operate as close to these limits as possible, with results that are provable within a rigorous theoretical framework.” The launch of the Unit-e is planned for the second half of 2019. Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project

BitPay CEO Says Bitcoin Is Solving Real Problems Around the World

BitPay co-founder and CEO, Stephen Pair, has recently commented that Bitcoin (BTC) is solving several issues around the world. He said that in a press release uploaded a […] The post BitPay CEO Says Bitcoin Is Solving Real Problems Around the World appeared first on UseTheBitcoin.
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Trillion Dollar Market Cap, Ethereum Chain Splits & Stellar Lumens Fund - Crypto News

In this video, Mattie gives you the latest bitcoin and crypto news. He talks about the ethereum chain splitting, BitGo CEO Says Institutional Money in Crypto Can ‘Easily’ Reach Trillions of Dollars, and a new Stellar Lumens fund. This is a daily segment! ----------------------------------------------------------------------------------- CHECK OUT OUR PODCAST: New episode every Monday and Friday! ----------------------------------------------------------------------------------- Check out Altcoin Buzz Ladies! ---------------------------------------------------------------------------------- Connect with us on Social Media: Twitter: Facebook: Telegram: ---------------------------------------------------------------------------------- Looking for the best cryptocurrency wallets? Check these out: BitLox: CoolWallet S: Trezor: Ledger Nano S: KeepKey: Read about them here: --------------------------------------------------------------------------------- References: Leading Crypto Asset Manager Grayscale Launches Stellar Lumens Trust Crypto Investment Firm Grayscale Launches Fund Dedicated to Stellar Lumens (XLM) Grayscale Tweet Grayscale BitGo CEO Says Institutional Money in Crypto Can ‘Easily’ Reach Trillions of Dollars As Company Launches Cold Storage Trading Crypto’s Billion-Dollar Theft Problem Prompts Safer Way to Trade Ethereum Chain Splits, An Estimated 10% of Miners Stay on Constantinople Ethereum Upgrade – Constantinople Hard Fork Delayed VanEck to Nasdaq: Bitcoin Market Structure Expected to Improve in 2019 Nasdaq Tweet -------------------------------------------------------------------------------- DISCLAIMER The information discussed on the Altcoin Buzz YouTube, Altcoin Buzz Ladies YouTube, Altcoin Buzz Podcast or other social media channels including but not limited to Twitter, Telegram chats, Instagram, facebook, website etc is not financial advice. This information is for educational, informational and entertainment purposes only. Any information and advice or investment strategies are thoughts and opinions only, relevant to accepted levels of risk tolerance of the writer, reviewer or narrator and their risk tolerance maybe different than yours. We are not responsible for your losses. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence and consult the financial advisor before acting on any information provided. Copyright Altcoin Buzz Pte Ltd. All rights reserved.
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