The Federal Financial Supervisory Authority (BaFin) has issued another consumer warning concerning KapitalWert, a company accused of offering unauthorized banking and financial services through a new website. This announcement was made in a news release on January 7, 2025.
According to BaFin, a warning was previously issued on October 30, 2024, regarding the website markt-kapitalwert.com, which is associated with KapitalWert. The platform had been flagged earlier by the regulator. The new website is almost identical to kapitalwert.pro and is suspected of providing unauthorized financial and investment services. BaFin said that the content of this website mirrors other platforms it has warned about.
Section 37 of the German Banking Act (KWG) empowers BaFin to take action against unauthorized banking activities or financial services. If a company operates without necessary licenses or engages in prohibited transactions, BaFin can order operations to cease and appoint a liquidator for settlement. Furthermore, BaFin has the authority to inform the public if a company is suspected or found engaging in unauthorized activities. Should such information be proven false, BaFin is required to correct it, as per the Federal Ministry of Justice of Germany.
Blockpit's assessment of licensed cryptocurrency exchanges in Europe ranks Binance first due to its regulation across multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase holds second place with 98% of assets stored offline, BaFin licensing in Germany, and robust security protocols. Kraken ranks third with 95% of its assets in cold storage and compliance with EU and international regulations.
BaFin oversees the stability and integrity of Germany's financial system by supervising banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and related entities. Its responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing. Since May 1, 2002, following the merger of three federal supervisory offices, BaFin has been responsible for regulating and supervising the financial sector.