Germany's Financial Regulator Issues Public Warning Against CoinBene Exchange.

Germany's Financial Regulator Issues Public Warning Against CoinBene Exchange.

2019-05-29 | Robin Williams

Germany's Financial Regulator Issues Public Warning Against CoinBene Exchange.

BaFin - The Federal Financial Supervisory Authority, Germany’s monetary regulator, has recently issued a 'public warning' against cryptocurrency exchange ‘CoinBene’.

The Regulators added that CoinBene has been recruiting freelance crypto traders who get paid on commission. BaFin stated that since crypto assets are monetary instruments, trading them needs authorization beneath Germany’s Banking Act, or KWG [Kreditwesengesetz].

BaFin adds that CoinBene isn't listed in Germany’s commercial register and has not obtained formal licensure for trading cryptocurrency assets as mandated by the KWG.

CoinBene has antecedently responded to inquiries relating to its presence in Germany, denying that it had been hiring freelancers in a freelancers in an 'official post':

“We received several inquiries relating to our alleged hiring in Germany. However CoinBene isn't planning to open any office nor hiring any representative in Germany. Moreover, we'd like to thanks those who actively reached approached us for their concerns and understanding.”

As 'reported' earlier, CoinBene has been suspected of covering up a hack. Though, the exchange denied the claims, stating that the flow of outgoing funds was the result of an in-progressive maintenance.

Data scientists at 'blockchain' infrastructure firm named ‘Elementus’ afterwards found that the details regarding the outgoing transactions were in line with those who would be seen in a hack. However, the analysts declared that their findings didn't refute CoinBene’s claims.

The Chief executive officer of Howdoo ‘David Brierley’, claims to have lost around 18.4 Mln of the company’s token uDOO [around $209,000] within the process and is reportedly seeking to file a legal case against the exchange.

Presently, CoinBene is the 10th largest 'cryptocurrency' exchange by adjusted trade volume at the reporting time, in line with 'CoinMarketCap'. CoinBene’s current trade volume is $1.46 Bln.

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