In a notice dated 22 June 2020, BaFin ordered CHP Holdings Ltd., Saint Vincent and the Grenadines, to cease cross-border proprietary trading immediately.
On the website www.bithandel.com, the company operates a virtual currency exchange where German customers can exchange cryptocurrencies for legal tender.
The company is thus conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the German Banking Act (Kreditwesengesetz – KWG) on a commercial basis without having obtained authorisation from BaFin, as required under section 32 (1) of the KWG. It is therefore conducting unauthorised business activities.
By law, the order is immediately enforceable but not yet final.