German regulator federal financial supervisory authority issued a warning against Bulgarian cryptocurrency broker 5 Capital on Nov. 11.The regulator has barred 5 Capital from operating in the country since the firm illegally offered Contracts for Difference designed to expose clients to the price movements of cryptocurrencies. Operating without licenseThe regulator found that the company provided the service without the necessary license.

Per the announcement, the broker is based out of Sofia, Bulgaria and solicits its users to use a website operated by its parent company, 21TEX. BaFin recommends investors to always check the identity of the companies offering the services they use and do not trust companies that cannot be easily identified. BaFin elsewhereAs Cointelegraph reported in late July, starting this year, new Anti-Money Laundering regulations will come into effect in Germany next year.

While derivatives such as those offered by the firm in question do not fall under this requirement, they are still regulated by the European Securities and Markets Authority as instruments offered to retail investors. This is not the only recent action by the German regulator. As Cointelegraph reported earlier this week, BaFin announced on Nov.

11 that it had issued a cease and desist order to Karatbit Foundation to immediately stop unauthorized business in Germany.