Topic Unauthorised business GmbH: BaFin orders cessation of unauthorized principal broking services

Date: 05.02.2018

As of 29 January 2018 BaFin issued a cease and desist order against GmbH, Berlin, to immediately cease its bitcoin brokerage services (Finanzkommissionsgeschäft).

On its website GmbH invited investors to transfer their bitcoins to GmbH, which would then sell these through an exchange platform; the purchase price obtained, it claimed, would be passed on to the investors within 30 minutes. GmbH did not have the necessary authorization to provide such services. GmbH claimed on its website to have some sort of approval of its business by BaFin, which it did not.

The cease and desist order is immediately enforceable; it may still, however, be contested in court.

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