Apparent regulatory deficiencies at Crypto.com

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

Singapore-based crypto provider Crypto.com became active in Germany without having the proper license, reports Finance Forward. The company incorrectly identified financial provider CM Equity as its German license partner, he said. There had been talks between the two companies about a cooperation, but CM Equity had not been informed that it was indicated as an active partner by Crypto.com. Therefore, the previous advertising campaign of the crypto provider in Germany would not be regulatory compliant.

According to the crypto company, a thorough review of its facility in Germany was conducted to ensure that it complied with regulations. The company only has a license in Malta so far. In order to start the German business, a German partner company with an appropriate license is required. In the future, an official cooperation with CM Equity will actually be established. "We will take over all customers and work legally and regulatory clean," Michael Kott, founder and CEO of CM Equity told Finance Forward.