The Federal Financial Supervisory Authority (BaFin) has announced an investigation into AVA Trade, cautioning that the company may be offering financial services on platformava.com without proper authorization. This announcement was made in a news release on January 23, 2025.
According to BaFin, the company AVA Trade might be providing banking and financial services through its website platformava.com without the necessary authorization. BaFin clarified that the company is not under its supervision and that platformava.com is not affiliated with Ava Trade EU Limited, which is based in Dublin, Ireland.
Section 37 of the German Banking Act (KWG) permits BaFin to take action against unauthorized banking activities or financial services. If a company operates without required licenses or engages in prohibited transactions, BaFin can order operations to cease and appoint a liquidator for settlement. The authority also has the power to inform the public if a company is suspected or found to be involved in unauthorized activities. Should such information prove false, BaFin is obligated to correct it, as said by the Federal Ministry of Justice of Germany.
Blockpit’s analysis of Europe’s safest licensed cryptocurrency exchanges ranks Binance first due to its regulation in multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase ranks second with 98% of assets held offline, licensing by BaFin in Germany, and advanced security protocols. Kraken takes third place by storing 95% of assets in cold wallets and adhering to regulations across the EU and other regions.
BaFin oversees the stability and integrity of Germany’s financial system. It supervises banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and other related entities. Its responsibilities include solvency supervision, market supervision to ensure fair and transparent conditions, and preventing misuse for money laundering or terrorist financing.
