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The Federal Financial Supervisory Authority (BaFin) has issued a warning to consumers regarding platforms that promote AI-driven algorithms for trading financial instruments and cryptoassets. This announcement was made in a news release on February 6, 2025.
According to BaFin, an investigation is underway into unlicensed platforms offering AI-based financial and crypto trading services. The companies under scrutiny include ZivaProfit7, Velmo Coin AI, Zolintex AI, LuxiGain AI, and TivanaFund AI. These services require a BaFin license to operate legally in Germany. Consumers are advised to verify the authorization of companies through BaFin's company database. This action is grounded in the German Banking Act (KWG) and the Crypto Markets Supervision Act (KMAG), as said in a press release by BaFin.
The German Crypto Markets Supervision Act (KMAG), which came into effect on December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It emphasizes market transparency, operational resilience, and compliance with European crypto regulations. The KMAG mandates that crypto service providers secure licenses, maintain robust systems, and ensure transparent practices within the sector. This framework aims to support secure and compliant market operations in alignment with EU standards.
