BaFin warns of unauthorized services by 'Investitions-Projekt Gas Profit App'

The German Federal Financial Supervisory Authority (BaFin) has issued a warning to consumers regarding the "Investitions-Projekt Gas Profit App." The authority suspects that the app's operators are offering unauthorized financial, investment, and cryptoasset services.

According to BaFin, the operators of the app contact consumers via email and falsely claim affiliation with Baden-Württembergische Wertpapierbörse GmbH or Boerse Stuttgart Digital Custody GmbH. These claims are deemed incorrect and constitute identity fraud. BaFin's warning is based on provisions from the German Banking Act and the German 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 focuses on 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 crypto sector. This framework supports secure and compliant market operations in alignment with EU standards.

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Blockpit’s analysis ranks Binance as Europe's safest licensed cryptocurrency exchange due to its regulation in multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase is ranked second, holding 98% of assets offline and being licensed by BaFin in Germany. Kraken ranks third with 95% of assets stored in cold wallets and adherence 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.