Cayman Island Exchange Rtcoin is Unlicensed in Germany: BaFin

Based on an investigation carried out by the German financial watchdog Federal Financial Supervisory Authority better known by its abbreviation BaFin, Rtcoin a Cayman Island-based cryptocurrency exchange is not licensed in the region. Therefore, it has been clearly stated that the exchange has no authority to conduct any banking operations or offer any of its services to German residents. 

Markedly, any firm that wishes to operate in Germany as a financial service provider or provide any banking services would be required to be licensed under the KWG, Germany’s Bank Act which provides guidelines for entities providing the aforementioned services. Information derived from the Rtcoin official website shows that the exchange has been providing such services without the necessary authorization. 

Ultimately, “BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.”

Rtcoin on the other hand claims to be licensed in the Cayman Island where it is headquartered.

The company’s website says it has operations in four jurisdictions including the United Kingdom. However, it does not appear on the list of registered companies with the Financial Conduct Authority (FCA) U.K either with a temporal or permanent license. Rtcoin has German stated as one of its eight official service languages.

Bitpanda Receives License in Germany

Bitpanda is one of the few cryptocurrency exchanges that wields a license from regulators in Germany.

The Austria-based exchange received the authorization last month amidst the implosion of the FTX Derivative Exchange. The BaFin-backed license gives Bitpanda Asset Management GmbH the authority to offer custody and proprietary trading services to customers in Germany.

“Additionally, Bitpanda will be able to maintain an order book and directly market services for crypto assets, enabling them to provide a secure and regulated environment for German customers to invest in a wide range of cryptocurrencies.”

Based on a report, Germany is fast becoming a crypto-friendly nation and has successfully dethroned Singapore to become the first on the list. Several crypto firms are finding their way to Germany and exploring the opportunities which the region presents.