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The Federal Financial Supervisory Authority (BaFin) has issued a warning regarding Profit Phantom, which is allegedly offering financial, investment, and crypto asset services without the necessary authorization. This announcement was made in a news release on March 7, 2025.
According to BaFin, Profit Phantom is suspected of providing unauthorized services through its website profitphantom.io. The authority emphasizes that any company offering such services in Germany must possess official authorization, which Profit Phantom reportedly lacks. BaFin advises consumers to verify a company's authorization status using its database. The warning is grounded in the German Banking Act and the Cryptomarkets Supervision Act.
The German Crypto Markets Supervision Act (KMAG), effective from 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. KMAG mandates that crypto service providers secure licenses, maintain robust systems, and ensure transparent practices within the sector. This framework supports secure and compliant market operations aligned with EU standards.
