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BaFin Launches Investigation against UpbitFx Exchange

The German financial regulator, BaFin, announced on Monday a
formal investigation of UpbitFx Exchange ltd. According to the press note, the
platform is not authorized to conduct business or provide financial services in
Germany.

BaFin says it has reason to suspect that the platform is
used to provide banking services and financial services without the necessary
authorization based on the contents of the website upbitfxexchange.com and
information and documents available to BaFin.

“In several places on its website, the company claims to be
regulated by BaFin. This claim is not true. In addition, the platform makes
reference to the website nsbroker.com in several places. This is the website of
NSFX Limited, an institution that is authorized in Malta and registered with
BaFin as a cross-border service provider under section 74 of the WpIG,” BaFin
noted.

UpbitFx Exchange ltd. and NSFX Limited have no connection to
each other. NSFX Limited is, therefore, an alleged victim of identity theft.
UpbitFx Exchange Ltd is the main name by which the website’s operator refers to
itself on upbitfxexchange.com. It is also known as EM Ltd. in certain
locations. According to the website, the company has offices in the United
States and Malta.

“BaFin, the German Federal Criminal Police Office
(Bundeskriminalamt – BKA), and the German state criminal police offices
(Landeskriminalämter) recommend that anyone seeking to invest money online
should exercise the utmost caution and do the necessary research beforehand in
order to avoid becoming the victim of fraud,” the watchdog warned.

BaFin’s Advice on Social Media Tips

Recently, BaFin issued a warning on crypto trading advice on
social media. Although there was no direct reference to social media channels,
Telegram is one of these sources.

BaFin did provide its principles for any investor that
wishes to use social media for investment tips.

The number of followers, likes, or positive feedback are not
valid indicators, it said. They do not reflect the performance of the
investment tips. It is very easy to manipulate results on social media.
Positive feedback or references related to investment success stories can be
fictionized and produced at the author’s request.

The German financial regulator, BaFin, announced on Monday a
formal investigation of UpbitFx Exchange ltd. According to the press note, the
platform is not authorized to conduct business or provide financial services in
Germany.

BaFin says it has reason to suspect that the platform is
used to provide banking services and financial services without the necessary
authorization based on the contents of the website upbitfxexchange.com and
information and documents available to BaFin.

“In several places on its website, the company claims to be
regulated by BaFin. This claim is not true. In addition, the platform makes
reference to the website nsbroker.com in several places. This is the website of
NSFX Limited, an institution that is authorized in Malta and registered with
BaFin as a cross-border service provider under section 74 of the WpIG,” BaFin
noted.

UpbitFx Exchange ltd. and NSFX Limited have no connection to
each other. NSFX Limited is, therefore, an alleged victim of identity theft.
UpbitFx Exchange Ltd is the main name by which the website’s operator refers to
itself on upbitfxexchange.com. It is also known as EM Ltd. in certain
locations. According to the website, the company has offices in the United
States and Malta.

“BaFin, the German Federal Criminal Police Office
(Bundeskriminalamt – BKA), and the German state criminal police offices
(Landeskriminalämter) recommend that anyone seeking to invest money online
should exercise the utmost caution and do the necessary research beforehand in
order to avoid becoming the victim of fraud,” the watchdog warned.

BaFin’s Advice on Social Media Tips

Recently, BaFin issued a warning on crypto trading advice on
social media. Although there was no direct reference to social media channels,
Telegram is one of these sources.

BaFin did provide its principles for any investor that
wishes to use social media for investment tips.

The number of followers, likes, or positive feedback are not
valid indicators, it said. They do not reflect the performance of the
investment tips. It is very easy to manipulate results on social media.
Positive feedback or references related to investment success stories can be
fictionized and produced at the author’s request.


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