German Financial Authority Warns Public About PlatinCoin Crypto Firm

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The German Federal Financial Supervisory Authority (BaFin) published a warning that the proper authorities do not authorize a firm named Platin Genesis DCC.

In the warning, BaFin says that Platin Genesis was advertising a ‘Platinum Coin Crypto Fraud’ on social media which is claimed: “approved and released by BaFin.” The watchdog explains in its statement that this is not true.

As per BaFin, the firm doesn’t have approval under section 34 of the German Banking Act to conduct banking activities or offer financial services. The firm is not under BaFin’s supervision.

The firm’s token ‘Platincoin’ is listed on CoinMarketCap, and is trading at $4.48, down 2.37% on its daily chart at press time.

Prior this month, BaFin ordered a partial suspension of activities of U.K.-based cryptocurrency-related firm Finatex Ltd. The firm was directed to “immediately” put an end to cross-border proprietary trading on its trading platform, Crypto-Capitals.

Finatex purportedly offered “options, contracts for difference (CFDs) on indices, shares,  currencies, and commodities,” without authorization by the German Banking Act.

BaFin has kept a hawkish stance towards ICOs and has called for international regulation and has called for international regulations in the sector. A month ago, BaFin chairman Felix Hufeld stated that “the number (of ICOs) and the volume (of money) per ICO are both getting higher. Investors have mostly minimal rights.”

Referencing ICOs, Hufeld suggests private investors to “keep away from such things” adding that discussions on ICO regulations were underway in “multiple international forums.”