CoinBene Crypto Exchange Becomes Subject of Germany’s BaFin Latest Public Warning Notice

BaFin, better known as the Germany-based Federal Financial Supervisory Authority, has recently issued a warning regarding supposed cryptocurrency exchange, CoinBene LTD, reports Coin Telegraph. Upon visiting the original source of news, it turns out that CoinBene LTD has not acquired the necessary licenses and registration to operate the business.

However, they have since been trying to hire employees. This is what troubles German regulators, as they suspect the possibilities of fraudulent activities being carried out in this way. Here’s an extract that is the closest translation available:

“The company [CoinBene] recruits freelancers whose job is to trade cryptocurrencies for customers of the company for commission payments. The freelancer should provide his or her own bank account and perform trades prescribed by the company through cryptocurrency trading platforms.”

Those who have been approached by the crypto exchange are asked to be cautious as they may be used in an ill manner. More specifically, BaFin noted that those who provide their bank accounts might not be educated on its source (i.e. from criminal or fraudulent activities).

While one might be happy to see that BaFin was successful in bringing out a potential con exchange, it turns out that CoinBene has previously spoken out against these “false” claims. In particular, Coin Telegraph referenced the exchange’s older Twitter post, in which the latter argued that they have not decided to expand to Germany, explicitly indicating no recruitment being executed.

We received numerous inquiries regarding our alleged hiring in Germany
But CoinBene is not planning to open any office nor hiring any representative in Germany. Nonetheless, we would like to thank those who actively reached out to us for your concern and understanding pic.twitter.com/1Jxid6sit2

— CoinBene Global (@CoinBene) May 25, 2019

On this note, it is interesting to see that the CoinBene has not refuted the fact that they have yet to register the business and hence cannot provide the services they intend to. As per CoinBene:

“CoinBene is not planning to open any office nor hiring any representative in Germany. Nonetheless, we would like to thank those who actively reached out to us for your concern and understanding.”

Whether claims made by CoinBene can be trusted is questionable, as the crypto exchange was previously caught for trying to cover up a hack, which has since been confirmed by the overall tracking of transactions.