The German Federal Financial Supervisory Authority (BaFin) has issued a warning to consumers regarding the website turbon.co. The authority suspects that the site offers unauthorized financial, investment, and cryptocurrency services while falsely claiming to be based in London.
According to BaFin, the operators of turbon.co are suspected of illegally providing these services to consumers in Germany without obtaining the necessary authorization from BaFin. This requirement is mandated under section 37(4) of the German Banking Act (KWG) and section 10(7) of the German Crypto Markets Supervision Act (KryptoMAnG). BaFin emphasizes that entities offering such services must be officially licensed, and advises consumers to verify a provider’s authorization status through BaFin’s company database. The authority collaborates with the Federal Criminal Police Office (BKA) and state criminal police offices (Landeskriminalämter) in these efforts.
The German Crypto Markets Supervision Act (KMAG), set to take effect on December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It aims to enhance market transparency, operational resilience, and compliance with European crypto regulations. The KMAG requires crypto service providers to secure licenses, maintain robust systems, and ensure transparent practices within the sector. This framework is designed to support secure and compliant market operations in alignment with EU standards.
Blockpit’s analysis ranks Binance as Europe’s safest licensed cryptocurrency exchange due to its regulation across multiple European countries, AES-256 encryption, and its Secure Asset Fund for Users (SAFU) program for user protection. Coinbase is ranked second, holding 98% of assets offline and being licensed by BaFin in Germany with advanced security protocols. Kraken ranks third 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 by supervising banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and other related entities. Its responsibilities include solvency supervision, ensuring fair market conditions through market supervision, and preventing misuse for money laundering or terrorist financing.
