Ebay: Sale of crypto currencies without a license?

The online platform Ebay apparently offers unlicensed crypto currencies for sale, including unambiguous scams and coins whose offer prices are out of proportion to the current market rate. Those responsible seem to be aware of this problem and have taken steps, but it remains to be seen how effective they are.

Ebay, the world’s largest online marketplace, seems to have a massive problem with regulating the products offered on its platform. For example, crypto currencies are set as goods and offered for sale completely unchecked. This is done in various ways, for example by offering paper wallets or vouchers that can subsequently be exchanged for crypto currencies. In total, several such offers are made daily which clearly promise the purchase of crypto currencies via the Ebay platform.

This Bitcoin code is not only cumbersome and confusing, but could also prove problematic

In Germany, it is not permitted to conduct commercial financial services business without being in possession of a corresponding licence. A corresponding licence is issued by the Federal Financial Supervisory Authority (BaFin) and can cost a six-figure euro amount, depending on the scope of the financial services to be offered. If this license is missing, it is not permitted to sell financial products commercially. This constitutes a criminal offence under Section 54 of the German Banking Act (KWG): https://www.geldplus.net/en/bitcoin-code-review/

Apart from the fact that the pure offering and selling of Bitcoin code crypto currencies is not permitted without a corresponding license, the offered products generally lack any substance. For example, various crypto currencies are offered at a price that far exceeds the current market value of the coin, as can be seen in the image section. The Ebays format also does not allow to take into account the hourly fluctuating price adjustments of the respective crypto currencies. In addition, it also happens that quite obvious scams and non-existent crypto currencies are offered for sale in order to take advantage of the ignorance of potential crypto users in a clearly fraudulent intention.

Finally, the question of Ebay’s role in this Bitcoin code story inevitably arises

Since these illegal and morally highly questionable offers are still left undisturbed, this suggests that the platform is at least finding it difficult to regulate the abuse of its own online marketplace for illegal Bitcoin code purposes. Important basic principles such as the know-your-customer approach (KYC) are violated in this way. It is also possible that the platform may be misused for Bitcoin code money laundering purposes.

Ebay provided evasive answers to the repeated questions of blockchain developer and BTC-ECHO reader Michael Padilla. It could be heard, for example, that the employees would not be able to check everything, that necessary filters had already been installed or that crypto currencies are currently simply very popular. However, Ebay does not seem to have found an effective antidote against the illegal trading of crypto currencies via its platform.