The German Federal Financial Supervisory Authority (BaFin) has issued a warning regarding the website profitphantom.org, which is offering financial, investment, and crypto asset services without the necessary authorization. This announcement was made in a news release on March 28, 2025.
According to BaFin, an additional warning has been issued about profitphantom.org, operated by unknown parties suspected of providing unauthorized services. This follows a previous alert on March 6, 2025, concerning profitphantom.io, which is now offline. The regulator emphasizes that such services in Germany require approval under Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG). BaFin advises the public to consult its company database to verify authorizations.
The 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 act mandates that crypto service providers secure licenses and maintain robust systems to ensure transparent practices within the sector. This framework aims to support 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 Secure Asset Fund for Users (SAFU) program for user protection. Coinbase ranks second with 98% of assets held offline and licensing by BaFin in Germany. Kraken comes 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.
