BaFin announces another warning on unauthorized services by Grow State Markets

BaFin announces another warning on unauthorized services by Grow State Markets
Webp branson3
Mark Bran­son, president of BaFin | BaFin

The Federal Financial Supervisory Authority (BaFin) has issued a consumer warning concerning Grow State Markets, a company accused of offering unauthorized banking and financial services through a new website. This announcement was made in a news release on February 6, 2025.

According to BaFin, Grow State Markets, previously operating under the website growstatemarkets.com, is providing financial, investment, and crypto asset services without proper authorization. The company claims to be supervised by the non-existent FINAEU, which does not regulate financial businesses and was previously the subject of another BaFin warning in August 2024. This warning aligns with the German Banking Act (KWG) and the Crypto Markets Supervision Act (KMAG), as said in BaFin's news release.

The German Crypto Markets Supervision Act (KMAG), effective from December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It emphasizes market transparency, operational resilience, and compliance with European crypto regulations. The KMAG mandates that crypto service providers secure licenses, maintain robust systems, and ensure transparent practices within the crypto sector. This framework supports secure and compliant market operations in alignment with EU standards.

Blockpit’s analysis of Europe’s safest licensed cryptocurrency exchanges ranks Binance first due to its regulation in multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase takes second place with 98% of assets held offline, licensing by BaFin in Germany, and advanced security protocols. Kraken ranks third by storing 95% of assets in cold wallets and adhering to regulations across the EU and other regions.

BaFin oversees the stability and integrity of Germany's financial system. It supervises banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and other related entities. Its responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing.

Related