BaFin alerts German public against CoinBene

Germany’s financial regulator BaFin (Federal Financial Supervisory Authority) issued a warning against 8th biggest cryptocurrency exchange, CoinBene and stated that it is not registered in Germany’s commercial register and has not acquired a license for trading digital assets as required by Germany’s Banking Act.

The watchdog claimed that CoinBene has been employing freelance digital traders for trading of digital assets. Whereas, according to the Banking Act of Germany, trading of digital assets require proper approval of designated authority organizations, since they fall under the umbrella of financial instrument.

Meanwhile, on its official Twitter handle, CoinBene denied all the rumors regarding its existence in Germany and hiring of freelancers for crypto trading.

Previously, CoinBene tried to cover up an alleged hack. It refuted claims of outward transcations of funds and claimed it to be results of schedule maintenance. Data experts from Blockchain firm Elemtus claimed that those outward transcations had been consistent with the hack.

A study from San Francisco based Bitwise Asset Management recently made claims regarding cryptocurrency exchanges and stated that unregulated exchanges like CoinBene expand the trading volume as compared to regulated exchanges like Coinbase. According to the study almost ninety-five percent of all reported trading is artificially generated.

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