- Financial regulators in both South Africa and Germany have issued orders against Karatbars International.
In Germany, according to a recent press release by BaFin, the Federal Financial Supervisory Authority of Germany, a cease and desist order has been issued against Karatbit. The cease and desist is to stop the company from its unauthorized electronic money business in Germany.
As for South Africa, the Financial Sector Conduct Authority issued its own press release warning the public to not deal with Karatbars International, as it is not authorized in terms of the Financial Advisory and Intermediary Services Act, to render any financial advice and intermediary services. The press release continues that the authority was informed that the company has been offering investments to customers through WhatsApp, a messaging platform.
A recent report indicates that these warnings are being issued as the company’s investors realize that they have been misled by the company. Further, the company had first offered cryptocurrency in February 2018.