Apparent regulatory deficiencies at Crypto.com

According to media reports, the crypto app actively recruited customers in Germany without having the appropriate licenses.

The crypto provider Crypto.com from Singapore became active in Germany without having the correct license, reports Finance Forward. The company falsely identified the financial provider CM Equity as its German license partner. Although there had been talks between the two companies about a cooperation, CM Equity had not been informed that it was listed as an active partner by Crypto.com. As a result, the crypto provider's advertising campaign in Germany to date would not have been regulatory compliant.

According to the crypto company, a thorough review of its facility in Germany was conducted to ensure compliance with regulations. The company only has a license in Malta so far. In order to start business in Germany, a German partner company with a corresponding license is required. In the future, an official cooperation with CM Equity will be established. "We will take on all clients and work in a legally and regulatory compliant manner," Michael Kott, founder and managing director of CM Equity, told Finance Forward.