The German Federal Financial Supervisory Authority (BaFin) has issued a warning regarding Royals Fund, which is allegedly offering unauthorized financial and cryptocurrency services under false regulatory claims.
According to BaFin, the company Royals Fund, claiming to be based in Munich, is suspected of providing unauthorized financial, investment, and cryptoasset services through its websites royalsfund.com and cfd.royalsfund.com. The company reportedly falsely asserts supervision by a non-existent "European Financial Supervisory Authority." BaFin emphasizes that such services in Germany require authorization under section 37(4) of the German Banking Act and section 10(7) of the Cryptomarkets Supervision Act. Consumers are advised to verify companies using BaFin's public database.
The German Crypto Markets Supervision Act (KMAG), effective from December 27, 2024, introduces regulatory measures for overseeing crypto markets in Germany. It aims at enhancing 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 aligns with EU standards to support secure and compliant market operations.
Blockpit’s analysis ranks Binance as Europe's safest licensed cryptocurrency exchange due to its regulation across multiple European countries, AES-256 encryption, and the SAFU (Secure Asset Fund for Users) program for user protection. Coinbase ranks second with 98% of assets held offline and licensing by BaFin in Germany. Kraken takes third place by storing 95% of assets in cold wallets while 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, among others. Its responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing.