Erscheinung:23.09.2020 | Topic Unauthorised business Kleinman Enterprise LTD/online trading platforms thecapitalstocks.com/ royaltyfinance.io: BaFin prohibits unauthorised proprietary trading and unauthorised acquiring business
In a notice dated 11 September 2020, BaFin ordered Kleinman Enterprise LTD, Saint Vincent and the Grenadines, to immediately cease its unauthorised proprietary trading activities.
The company enters into contracts for differences (CFDs), based on forex products, shares, indices, commodities and crypto currencies, with German customers via its platforms at www.thecapitalstocks.com and www.royaltyfinance.io.
The company is thus conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the the German Banking Act (Kreditwesengesetz – KWG) on a commercial basis. Kleinman Enterprise LTD does not hold authorisation from BaFin, as required under section 32 (1) of the KWG, and is therefore conducting unauthorised business.
Furthermore, the company has issued its own credit card via the www.royaltyfinance.io website and is offering it to customers.
The company is thus conducting acquiring business on a commercial basis within the meaning of section 1 (1) sentence 2 no. 5 of the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG). Kleinman Enterprise LTD does not hold the authorisation required under section 10 (1) sentence 1 of the ZAG either and is therefore conducting unauthorised business.
A legal notice cannot be found on either of the websites mentioned above. In the case of the www.royaltyfinance.io website, Kleinman Enterprise LTD has now been removed as the responsible entity. No other entities assuming responsibility are mentioned on the website.
