BaFin accuses CoinBene of non-compliance with German law

Posted 29 May, 2019

The Federal Financial Supervision Authority of Germany (BaFin) issued a warning to CoinBene due to the fact that it offers cryptocurrency products without complying with legal requirements. The regulator claims that the CoinBene Exchange hires freelance freelancers to conduct cryptocurrency operations in Germany.

"Coinbene LTD Germany is not registered in the country’s commercial register. It also accuses the company of hiring ‘freelancers’ to trade cryptocurrencies on behalf of its users in exchange for commission payments." stated BaFin.

BaFin claims that since cryptocurrencies are financial instruments, their trading requires authorization in accordance with the German Banking Act or Kreditwesengesetz (KWG). Meanwhile, CoinBene is not registered in the commercial register of Germany and has not received a proper license to trade in digital assets, as required by the KWG.

Exchange CoinBene quickly responded to BaFin’s announcement by replying to Twitter:

"We received numerous inquiries regarding our alleged hiring in Germany. But 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 understanding."

CoinBene is the eleventh largest cryptocurrency exchange in terms of the adjusted trading volume. CoinBene’s current trading volume is $146 billion.

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