The Federal Financial Supervisory Authority (BaFin) has issued a warning regarding Capital Group, accusing the company of offering financial, investment, and crypto asset services without the necessary authorization and engaging in identity fraud. This announcement was made in a news release on March 12.
According to BaFin, there is an ongoing issue with identity theft involving investment offers made through WhatsApp and the app "CGGERPRO," which falsely claim to be from Capital International Management Company (CIMC) or another Capital Group entity. These unauthorized investment services are not connected to the legitimate Capital Group or CIMC, based in Frankfurt. BaFin clarified that Capital Group does not use WhatsApp for communication and only operates through its official website.
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 requires crypto service providers to secure licenses, maintain robust systems, and ensure transparent practices within the crypto sector. The framework supports 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 takes second place with 98% of assets held offline, licensing by BaFin in Germany, and advanced security protocols. Kraken ranks 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, market supervision to ensure fair and transparent conditions, and preventing misuse for money laundering or terrorist financing.