BaFin announces warning on unauthorized services by TWAAO

The Federal Financial Supervisory Authority (BaFin) has issued a consumer warning concerning TWAAO, a company reportedly offering unauthorized banking and financial services through its website. This announcement was made in a news release on February 6, 2025.

According to BaFin, the website twaao.com is providing financial, investment, and crypto-asset services without the necessary authorization. Companies offering such services in Germany are required to be licensed by BaFin. Users can verify a company's authorization status through BaFin's database. The warning 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), which came into effect on 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 crypto 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 SAFU (Secure Asset Fund for Users) program for user protection. Coinbase is ranked second, with 98% of assets held offline and licensing by BaFin in Germany along with advanced security protocols. Kraken holds third place 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, market supervision to ensure fair and transparent conditions, and preventing misuse for money laundering or terrorist financing.