German regulator warns about crypto posts on social media
Germany’s Federal Financial Supervisory Authority (BaFin) today issued a warning about crypto posts on social media.
Crypto assets such as Bitcoin and Ether are complicated and very speculative financial products that are associated with high risks, the regulator says. Investors can even lose their entire invested capital. BaFin therefore warns of the dangers of such investments.
In addition, many of the investment tips circulating on social media about crypto assets and other financial products are unreliable. They may even be false, misleading, or fictitious.
BaFin often issues warnings regarding particular crypto businesses. Today, the regulator warned that Tether Global, operator of the website tether-global.de, is not an authorized firm according to § 32 KWG.
BaFin points out that it has not granted Tether Global any permission under Section 32 of the German Banking Act (KWG) to conduct banking business or to provide financial services in Germany. The company is not supervised by BaFin.
Tether Global operates the website tether-global.de and offers a trading platform for cryptocurrencies.
Providers of banking transactions or financial services in Germany require a license under the KWG or WpIG. However, some companies trade without the required permission. BaFin, the Federal Criminal Police Office (BKA) and the State Criminal Police Offices advise consumers to be extremely careful when investing online.