Crypto

BaFin Orders Euro Wealth OÜ to Cease Trading Immediately

The Federal Financial Supervisory Authority, more commonly referred to as BaFin, has rounded out its week by ordering the immediate cessation of cross-border proprietary trading arranged by Euro Wealth OÜ.

The decision, which was announced today, was made on January 8, 2019. Formerly known as OÜ Allpro Tech, which was previously Nostro Technology OÜ, the firm is an Estonian-based company which claims to operate in the financial services. In Germany, the company operates via its trading platform at www.prestige.fm.

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According to the German watchdog, the company offers German residents the ability to trade contracts for difference (CFD) on currencies, equities, commodities, indices and cryptocurrencies.

Euro Wealth OÜ offers these services, despite the fact that it does not have the proper authority to provide such products in Germany, therefore making its operations illegal. As a result, BaFin has ordered the company to stop its activities immediately. The decision from the regulator, however, is not yet final.

Euro Wealth OÜ warnings

BaFin is not alone in its warnings against Euro Wealth OÜ. A financial watchdog in the company’s base country Estonia, Finantsinspektsioon, has also warned against the company stating that it: “does not hold an activity licence for the provision of investment services in Estonia and therefore Euro Wealth OÜ is not authorised to provide investment services in Estonia.”

Because not one, but two, financial regulators have caught the company operating without a license, despite claiming to hold such a license, it is not too far of a stretch to say that Euro Wealth OÜ is running some kind of a scam.

In fact, a quick google search reveals a number of red flags for the company. Not only does it reveal warnings from financial regulators and forum threads with headlines such as “Euro Wealth OÜ scam”, but it has also been linked with globalfxm, an unregulated broker, which is also suspected of suspicious activity.

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