BaFin Issues Warning Against UpbitFx Exchange

The German watchdog BaFin has issued a warning noting that UpbitFx Exchange ltd. has not been granted authorisation under the German Banking Act (KWG) or the German Investment Institutions Act (WpIG) to conduct banking business or provide financial services. The company is not supervised by BaFin.

According to the German regulator, there are grounds to suspect that the platform is being used to conduct banking business and/or to provide financial services in Germany without the required authorisation based on the available contents of the website upbitfxexchange.com and on information and documents.

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BaFin further unveiled that in several places on its website, UpbitFx falsely claims to be regulated by BaFin. In addition, the platform makes reference to the website nsbroker.com in several places, which is the website of NSFX Limited, an institution that is authorised in Malta and registered with BaFin as a cross-border service provider under section 74 of the WpIG. Key parts of the website nsbroker.com have been copied by those responsible for the platform upbitfxexchange.com. NSFX Limited has no connections whatsoever to the products and services offered by UpbitFx Exchange ltd. or the company itself. This is therefore a case of identity theft committed against NSFX Limited.

Furthermore, on upbitfxexchange.com, the operator of the website primarily refers to itself using the name UpbitFx Exchange ltd. In a few locations, however, it also uses the name EM Ltd. The business addresses stated on the website are located in the United States and Malta.

"Companies that conduct banking business or provide financial services in Germany require authorisation under the KWG. Information on whether a particular company has been authorised by BaFin can be found in BaFin's database of companies," the watchdog highlighted in its announcement.