According to Germany's BaFin, Trading Platform GTS Financial Is Not Authorized

GTS Financial is not regulated by BaFin.

LiquiTrade Limited was notified by the authorities last month.

The German financial sector regulator, the Federal Financial Supervisory Authority (BaFin), declared on Monday that trading platform provider GTS Financial LLC is not permitted to operate in the nation.

According to BaFin, GTS Financial contacts German investors and promotes certain stocks despite not being licensed by the German Banking Act to provide banking or financial services to Germans.

The firm is not regulated by the financial markets regulator, according to regulator.

“The information provided on the website gtsfinancial.net, as well as the information and documents available to BaFin, provide reasonable grounds to suspect that the platform is being used to conduct banking business and/or provide financial services in Germany without the necessary authorization,” BaFin stated.

Furthermore, the regulator said that GTS Financial's assertions that it is monitored by the US Securities and Exchange Commission cannot be validated.

“On its website, the corporation lists two business locations in the United States, as well as other supposed business addresses in Denmark and Belgium,” BaFin stated.

The German regulator encouraged the public to check its company database to see whether a financial services business has been approved.

“BaFin, the German Federal Criminal Police Office, and the German state criminal police offices advise customers wanting to invest money online to exercise extreme care and do the required research ahead of time to avoid becoming a victim of fraud,” according to BaFin.

LiquiTrade BaFin's recent regulatory flagging of GTS Financial comes after its probe into LiquiTrade Limited, Cayman Islands, earlier this month.

The market regulator said that the firm is not allowed under the German Banking Act and is not supervised by it.

“Facts warrant the inference that LiquiTrade Limited performs unlawful banking and financial services in the Federal Republic of Germany based on the content of its website latoken.com,” the watchdog stated.

Meanwhile, BaFin recently confirmed that deposit insurance protection in the country's mainstream banking sector does not cover cryptocurrency losses.

“BaFin now emphasizes that crypto-assets do not come under the protection of deposit insurance and, as a general, investor compensation does not apply,” the regulatory body said.

About BaFin

The Federal Financial Supervisory Authority (BaFin) is an independent organization in charge of supervising financial institutions in Germany. BaFin-regulated brokers are expected to adhere to the strictest regulatory requirements to protect the integrity of the German and European financial markets. Germany is an important contributor to the European Economic Area (EEA), and the nation takes regulation extremely seriously. All brokers licensed under the MiFID derivative are permitted to provide their services in Germany without establishing a specific Forex brokerage in the nation, according to the EEA Agreement. As a result, brokers licensed by the FCA, CySEC, and other European regulatory bodies may offer their services to German residents. BaFin has its regulatory framework and principles, which are aligned with the MiFID derivative. BaFin also assumes Germany's internal legislative powers to execute a stringent set of legislation aimed at preventing financial irregularities and consumer exploitation.

Germany has a higher tax system as well as a somewhat greater barrier to entry. Germany compels all commercial entities to adhere to strict ethical standards in both business interactions and other financial activities, making BaFin one of the world's harshest regulatory organizations. The greater regulatory requirements and higher operational costs hinder Forex brokers from establishing a brokerage in Germany since a valid EU license from Cyprus or any other European nation enables them to service the whole EEA while keeping costs low.

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