the The German Federal financial Supervisory authority (BaFin) warns of the Robo Advisor Bitcoin trade robot. The company had no according to § 32 German banking act (KWG) approved Institute. The company announced on its own Website, neither the seat nor the legal form, should be the same for investors already a warning signal.
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23. January 2019BTC$3.569,42 -0.04%part Facebook Twitter LinkedIn xing mail
On Robo Advisor we have in the meantime already one or the other word is lost. In the high-tech crypto-market, it is only a matter of time until the automated financial Advisor will help investors to be more rational in dealing with their Investments. Currently, there are only a handful of these algorithm-based Trading platforms – often with dubious integrity.
No license for Bitcoin trade robot
This assessment seems to be shared by the BaFin, of course. From a press release stating that it has granted to the crypto-Robo-Advisor “Bitcoin trade robot, no permission according to § 32 KWG to Operate or Perform any banking transactions or Providing financial services in the territory of the country”.
saw the opinion of the BaFin, probably due to efforts on the part of Bitcoin trade robot, to want to be a business in this country offer forced. The financial Supervisory authority emphasises that the company places in the imprint, neither its seat nor its legal form open. In addition, the Domain bitcointraderobot.com be registered anonymously.
It is therefore of little surprise that there is no licensing on the part of the BaFin. Because the hurdles for crypto-companies in Germany, business activities, are high. The approval of a Bitcoin-ATMs failed again and again to the Know-Your-Customer requirements (KYC) and the Bank’s license.
Robo Advisors more popular than ever
Robo Advisors on investment strategies based on algorithmic indices. The aim is, on the basis of the individual risk of the customer profiles form optimized for the long term investment recommendations. The advantage is that robots can work on the Basis of the available data and can, therefore, be taken tend to be more consistent and more rational decisions than human investors. Finally, the latter carried too often emotional and short-term decisions.
Read also: BaFin assigns the setting of a Bitcoin CfD provider
Robo Advisors have their appeal. It is expected that the variety of approved algorithmic investment advisers, at times, also a digital Bitcoin Investor. But hopefully with a BaFin-license.
BaFin has
today, Wednesday, the 23.01.2018, follows the BaFin to yesterday’s distancing of dubious crypto-entrepreneurship. The authority points out that “neither the company IK partners Ltd., a permit would still be Morris Processing Ltd. [ … ] or a company called Finmaü in accordance with § 32 KWG”.
That the said companies reputable companies name confusingly similar to, however, it is not a coincidence. It is stated in the press release as follows:
“The BaFin points out that unauthorized companies often choose names that are similar to supervised institutions, to give potential customers confidence. The IK Partners Ltd. uses a name similar to the supervised and cross-border financial services institution IK Investment Partners Limited, London, United Kingdom.“