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CoinBene under the scanner of German Watchdog (BaFin)

The financial regulator of Germany, Federal Financial Supervisory Authority (BaFin), on May 28, issued a public notice regarding the cryptocurrency exchange CoinBene.

The supervisory body states that trading of cryptocurrency requires authorization under Kreditwesengesetz (KWG), or Germany’s Banking Act, because cryptocurrencies are financial instruments. In the notice issued, BaFin stated that CoinBene recruits freelance crypto traders who are paid on the basis of the commission made. Further, neither CoinBene is listed in the commercial register of Germany nor has a proper license, issued under KWG, for cryptocurrency trading.

Regarding the previous allegations over its presence in Germany, CoinBene took to Twitter denying any recruitment of freelancers.

As per its official Twitter post,

We received numerous inquiries regarding our alleged hiring in Germany. However, CoinBene is not planning to open any office nor hiring any representative in Germany. Nonetheless, we would like to thank those who actively reached out to us for your concern and understan.

This came into a response over the previous suspects on CoinBene of covering up the hacking procedure involved in trading of cryptocurrency. CoinBene has continuously denied these suspects and claims over its functioning, by stating that its ongoing maintenance resulted into the proper flow of outgoing funds.

The data scientists at Elementus, a blockchain infrastructure organization, found that the details of the ongoing transactions at CoinBene can be related with the data that is evident from the hack. At the same time, these data scientists stated that their findings did not disapprove the claims of CoinBene.

David Brierley, CEO of Howdoo, came in front to state that the token uDDO of the company has suffered a loss of 18.4 million in the process of the hack of cryptocurrency trading. Further, the company is reported to sue cryptocurrency trading.

According to the information retrieved from CoinMarketFeed, CoinBene stands at the eighth largest position of cryptocurrency trading, with the current trade volume being $1.36 billion.


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