The Federal Financial Supervisory Authority (BaFin) has issued a warning concerning the website edelraum.net, which is reportedly offering financial, investment, and crypto asset services without the necessary authorization. This announcement was made in a news release on March 27, 2025.
According to BaFin, an additional warning has been issued regarding edelraum.net, operated by unidentified individuals suspected of unlawfully offering these services without proper authorization. This follows a previous warning on March 5, 2025, about edelraum.com, which has since been taken offline. Offering such services in Germany requires prior authorization under Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the Crypto Markets Supervision Act (KMAG).
The German Crypto Markets Supervision Act (KMAG), effective from December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It focuses on market transparency, operational resilience, and compliance with European crypto regulations. The KMAG mandates that crypto service providers secure licenses and maintain robust systems to ensure transparent practices within the sector.
Blockpit's analysis ranks Binance as Europe's safest licensed cryptocurrency exchange due to its regulation in multiple European countries and advanced security measures like AES-256 encryption and the SAFU program for user protection. Coinbase ranks second with significant assets held offline and licensing by BaFin in Germany. Kraken takes third place with a substantial portion of assets stored in cold wallets.
In another development, BaFin has warned consumers about EmexFunding, suspecting it offers financial services without necessary authorization. The company claims to operate under EmexFunding GmbH with a registered office in Corby, United Kingdom; however, no such entity exists. EmexFunding GmbH is reportedly encouraging consumers to take out loans for trading financial instruments and crypto assets through a document called a "Handelskreditvertrag."