BaFin, the German equivalent of the Financial Supervision Authority (KNF), has reservations about Polish bitomats in Germany and accuses them of being illegal. For the uninitiated, bit machines are similar to ATMs, with the difference that you can buy bitcoins for cash or sell them for flat currency with their help. Will Shitcoins.club be in trouble because of illegal activity?
BaFin and Shcoins.club
The UGCC was given an order to stop “cryptic cross-border operations” in Germany. Such a decision was issued by BaFin – the financial market regulator. It is worth mentioning that the company is the owner of the Shicoins.club platform on which it is possible to buy and sell cryptocurrencies, as well as the owner of over thirty bitomats in the whole country.
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Currently, in Germany, cryptocurrencies are considered to be financial instruments, and thus the related activities must be licensed and strictly regulated. It turns out that the mentioned UGTC unfortunately does not have the required approvals and licenses that would allow it to continue such activity.
“The BaFin has established that the KT UG and Mr. Adam Gramowski, President of the Board, are responsible for the Shitcoins.club website. They are also the ones who are behind the bitomats for sale and purchase of cryptocurrencies, which the company operates and exhibits in Germany and advertises on www.shitcoins.club”.
– informs BaFin in the Polish version of the statement.
German law – amendments
Since this year, a new law has been in force in Germany regarding the cryptocurrencies. Handelsblatt, the information agency, explains:
“From 2020, it will be possible for financial institutions to offer their customers online banking with just one click, in addition, it will be possible to obtain classic securities, including bonds, shares and cryptocurrencies, quickly and conveniently.
A large lobbying group, which represents more than two hundred financial institutions – the Association of German Banks – expressed its support for the bill and claimed that the financial institutions which are supervised have experience and knowledge of market mechanisms and risks and are therefore able to adequately hedge their clients’ assets.
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The manager of Distributed Ledger Consulting – Sven Hildebrandt – revealed to the media in the autumn:
“German lawmakers play a major role in the regulation of the cryptic market. Germany may soon become a cryptic heaven.”
As you can see, the digital crypto= market was warmly welcomed by the Germans, but for everything to run smoothly, you have to follow the rules. Why did the KKT UG company ignore it? We don’t know. It is possible that it is planning to withdraw from the German market or adjust to the regulations. Time will tell. It is also unclear whether the company previously realised that it was violating the regulations. Even if not, as you know, ignorance of the law does not exempt you from liability. Let’s hope that we will soon find out about the further fate of the UGTC.