The Federal Financial Supervisory Authority (BaFin) has issued a warning to consumers regarding platforms that promote AI-driven algorithms for trading financial instruments and cryptoassets. This announcement was made in a news release on February 11, 2025.
According to BaFin, the warning targets unlicensed platforms offering AI-based financial and crypto trading services. Companies under scrutiny include ZivaProfit7, Velmo Coin AI, Zolintex AI, LuxiGain AI, and TivanaFund AI. These services require a BaFin license to operate legally in Germany. Consumers are advised to verify whether a company is authorized through BaFin's company database. This action is based on the German Banking Act (KWG) and the Crypto Markets Supervision Act (KMAG), as said in a press release by BaFin.
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 sector. This framework aims to support secure and compliant market operations aligned 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. BaFin’s responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing.