BaFin, the regulatory authority in Germany, recently issued a warning to consumers to watch out for a particular company.

The company in question, BitcoinTradeRobot, is operating within Germany, and is even going as far as to offer trading signals that are focused entirely on cryptocurrency. However, despite functioning as a crypto platform, they have neglected to follow the financial legislation in place within the country.

When BaFin described the activities, they said that there is an opportunity from BitcoinTradeRobot that is exclusively made to German customers. This would allow them to engage in “the alleged automated trading of Bitcoin against legal currencies.”

According to the company, consumers are able to purchase bitcoin market trading software, which it operates. This software trades automatically for the user and even is capable of generating real signals. At this point, there is no regulatory status for the company in any jurisdiction globally. Even though the website features address details online, it leads to nowhere, because the address itself does not exist.

BaFin takes this lack of correct information as another sign that the company is seeking out illegal crypto brokers, putting any user at risk for serious legal action. As BaFin supervises the local market as a whole, they’ve issued multiple advisories over the years, including the recent retail forex and CFDs trading stance. At the time, the company was trying to protect users from the unlimited losses that can happen when a broker does not offer negative balance protection

The cryptocurrency industry has been a point of concern for BaFin, especially as it has flourished in the past. They have consistently warned investors, keeping them informed about the major risks that they put themselves in the way of when they choose to invest in Bitcoin and other cryptocurrencies.

They have also addressed the dangers of ICOs, discussing the major risks of investing in projects with unrealistic claims and even without an actual product at all.

Germany has been an aggressive leader in regulating cryptocurrency since it started growing. The officials want to ensure that their citizens are safe from the fraudulent activity that can arise from dangerous players. In a recent development, Germany chose to collaborate with France to encourage them to regulate Bitcoin. This topic of discussion arose at the G20 summit, which was held in Argentina.

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