BaFin announces warning on unauthorized services by bitwelt.co

The Federal Financial Supervisory Authority (BaFin) has issued a warning concerning the website bitwelt.co, which is reportedly offering financial, investment, and crypto asset services without the required authorization. This announcement was made in a news release on February 27, 2025.

According to BaFin, the operator of bitwelt.co is providing these services without necessary permission. The website operates under the name Bitwelt and claims to be based in London, UK. In Germany, any entity offering such services must have BaFin's approval. Information regarding authorized companies can be found in BaFin’s database. The warning is grounded in Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).

The KMAG, effective from 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 act requires crypto service providers to secure licenses and maintain robust systems to ensure transparent practices within the sector. This framework supports secure and compliant market operations aligned with EU standards.

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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 follows in second place with 98% of assets held offline and licensing by BaFin in Germany alongside advanced security protocols. Kraken ranks third by storing 95% of assets in cold wallets while adhering to regulations across the EU and other regions.

BaFin supervises banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and related entities to ensure stability and integrity within Germany's financial system. Its responsibilities include solvency supervision and market supervision to maintain fair conditions while preventing misuse for money laundering or terrorist financing.