The Federal Financial SupervisoryAuthority (BaFin), Germany’s financial industry regulator, announcedon Monday that trading platform provider GTS Financial LLC is not authorized to operatein the country.
BaFin explained that GTS Financialcontacts German investors and recommends specific shares without being permitted under the German Banking Act to offer banking or financial services to Germans.
The financial markets regulator added thatthe company is not under its regulatory purview.
“The information provided on the websitegtsfinancial.net and the information and documents available to BaFin givereasonable grounds to suspect that the platform is being used to conductbanking business and/or provide financial services in Germany without therequired authorisation,” BaFin said.
In addition, the regulator noted that claims byGTS Financial that it is supervised by the US Securities and ExchangeCommission cannot be verified.
“The company mentions two businessaddresses in the USA on itswebsite. Moreover, the website refers to additional alleged business addresses inDenmark and Belgium,” BaFin said.
The German regulator advised the publicto check if a financial services firm has been authorized through its database of companies.
“BaFin, the German Federal Criminal PoliceOffice and the German state criminal police offices recommend that consumersseeking to invest money online should exercise the utmost caution and do thenecessary research beforehand to avoid becoming the victim of fraud,” BaFin said.
LiquiTrade
BaFin’s latest regulatory flagging of GTS Financial followsits investigation on LiquiTrade Limited, Cayman Islands, last month.
The market supervisor noted that thecompany is not authorized under the German Banking Act and is neither under itssupervision.
“Based on the content of its websitelatoken.com, facts justify the assumption that LiquiTrade Limited operatesillegal banking and financial services in the Federal Republic of Germany,” thewatchdog explained.
Meanwhile, BaFin recently clarified thatdeposit insurance protection in the country’s mainstream financial industrydoes not cover losses related to cryptocurrencies.
“BaFin now points out that crypto-assetsdo not fall under the protection of deposit insurance and, as a rule, theprotection of investor compensation does not apply either,” the supervisoryauthority noted.
The Federal Financial SupervisoryAuthority (BaFin), Germany’s financial industry regulator, announcedon Monday that trading platform provider GTS Financial LLC is not authorized to operatein the country.
BaFin explained that GTS Financialcontacts German investors and recommends specific shares without being permitted under the German Banking Act to offer banking or financial services to Germans.
The financial markets regulator added thatthe company is not under its regulatory purview.
“The information provided on the websitegtsfinancial.net and the information and documents available to BaFin givereasonable grounds to suspect that the platform is being used to conductbanking business and/or provide financial services in Germany without therequired authorisation,” BaFin said.
In addition, the regulator noted that claims byGTS Financial that it is supervised by the US Securities and ExchangeCommission cannot be verified.
“The company mentions two businessaddresses in the USA on itswebsite. Moreover, the website refers to additional alleged business addresses inDenmark and Belgium,” BaFin said.
The German regulator advised the publicto check if a financial services firm has been authorized through its database of companies.
“BaFin, the German Federal Criminal PoliceOffice and the German state criminal police offices recommend that consumersseeking to invest money online should exercise the utmost caution and do thenecessary research beforehand to avoid becoming the victim of fraud,” BaFin said.
LiquiTrade
BaFin’s latest regulatory flagging of GTS Financial followsits investigation on LiquiTrade Limited, Cayman Islands, last month.
The market supervisor noted that thecompany is not authorized under the German Banking Act and is neither under itssupervision.
“Based on the content of its websitelatoken.com, facts justify the assumption that LiquiTrade Limited operatesillegal banking and financial services in the Federal Republic of Germany,” thewatchdog explained.
Meanwhile, BaFin recently clarified thatdeposit insurance protection in the country’s mainstream financial industrydoes not cover losses related to cryptocurrencies.
“BaFin now points out that crypto-assetsdo not fall under the protection of deposit insurance and, as a rule, theprotection of investor compensation does not apply either,” the supervisoryauthority noted.
