Regulators against Karatbars

Regulators against Karatbars

Karatbars is a global e-commerce business, launched by Harald Seiz in 2011, operation in the mining and metals industry. The hammer is descending on the ecosystem as several actions over the sales of a purportedly gold-backed cryptocurrency are being taken by the regulators of South Africa and German. 

There is an allegation in disfavor of Karatbit Foundation, a global leader in the blockchain movement, of issuing KaratGold Coin, which runs on ethereum blockchain, without necessary licensing in the country. The allegation was brought about by German’s Financial Supervisory Authority or BaFin, one of the largest financial supervisory authorities in Europe with more than 2,600 employees.

FSCA or South Africa’s Financial Sector Conduct Authority, which was the government of South Africa’s financial regulatory agency responsible for the non-banking financial services industry in South Africa from 1990 to 2018, is also walking along the way of BaFin. They cautioned their consumers to keep themselves aloof from investments offered by Karatbars International GmbH.

BaFin ordered the foundation to wind up its electronic money business in Germany but they denied paying any comment in press regarding the issue. Their coin is already listed on about 30 exchanges. The white paper of Karatbank coin defines the entity as unregulated.

Response from Karatbars

Karatbars International, which was founded in 2011 on the principle of bringing the power of gold’s stable and rising value to the world’s citizen, denied all the allegations brought about by Handlesblatt, is a leading German-language business newspaper, against it. The Karatbars Foundation is ordered to bring back investor funds amounting to $100 million. But the CEO of the foundation said German finance regulator is mistaken in its order against the firm basing its actions on a scam website associated with the firm. They completely cooperate with the relevant authorities and are very anxious to clear up any misunderstanding as fast as possible interested because they are flexible and they don’t hide anything.

Hassle of regulators

Financial Sector Conduct Authority or FSCA, which assist in maintaining financial stability, said Karatbar International solicited the investors of South Africa throughout WhatsApp to buy unspecified investments without holding necessary authority. Reportedly, Karatbars, which is also the subject of a recent consumer warning from Nambia and prior warning in 2014 from the Netherlands, has promoted a licensed cryptocurrency bank in Miami but the Florida office of Financial Regulation has stated that Karatbars is not licensed as a bank with the regulator.

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