The German Federal Financial Supervisory Authority (BaFin) has issued a warning against the trading platform Axion Alliance. The agency said that the platform is offering financial, investment, and crypto asset services without the necessary authorization.
According to BaFin, Axion Alliance, previously known as axion-alliance.com, falsely claims associations with Axxion S.A., Universal-Investment-Gesellschaft mbH, and the non-existent European Financial Authority (FINAEU). BaFin clarified that Axion Alliance is not under its supervision. The authority emphasized that offering such services in Germany requires authorization from BaFin as per the German Banking Act (KWG), the German Crypto Markets Supervision Act (KMAG), and other relevant regulations.
The KMAG, which will take effect on 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 takes 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 related entities. Its responsibilities include solvency supervision and market supervision to ensure fair conditions while preventing misuse for money laundering or terrorist financing.