Crypto.com started in the German market without proper license
Crypto.com is currently campaigning for new customers with a major marketing offensive, including in Germany. However, the Singapore-based crypto app lacked the necessary licenses to do business in Germany for months, according to research from Finance Forward
The popular crypto app Crypto.com apparently was not licensed to operate in Germany and actively recruit customers for a long time. The company initially sought cooperation with the financial service provider CM Equity, which it had been displaying as a German license partner for some time. However, a collaboration did not materialize operationally, according to research by Finance Forward.
Nevertheless, Crypto.com also started an aggressive advertising campaign in Germany. The number of downloads increased rapidly. However, the expansion went ahead without the involvement of partner CM Equity, as would be required by law. The German financial regulator Bafin is already investigating the matter, but has not yet responded.
Only after an inquiry from Finance Forward did the Singapore-based crypto company confirm that it would actually work with CM Equity in the future. “Crypto.com, along with our local partner, has conducted a thorough review of our facility in Germany to ensure we are compliant as we are committed to operating to the highest standards,” said a spokesperson.
What exactly happened and what now? You can read the full research today on Finance Forward, the financial portal of Capital and OMR. You can sign up for the daily newsletter here.