Germany’s financial watchdog, BaFin, has mandated that ADE, a Bitcoin Group subsidiary, rectify certain inadequacies in its internal anti-money laundering protocols.
In an October notice sent to the group’s Futurum Bank subsidiary and made public on Tuesday, the regulator stated that it had discovered “serious deficits” in the system for reporting suspicious activity, due diligence requirements, and internal security measures.
According to Reuters, Bitcoin Group said in a statement on Wednesday that it was taking action to fix the issues.
“The Bitcoin Group expressly points out that there are currently no indications of violations of money laundering and terrorist financing laws within the Group,” said the company.
The acquisition of Munich-based Bankhaus von der Heydt, one of the world’s oldest banks, by Bitcoin Group garnered significant attention in the previous year.
BaFin was among the first regulators in the world to establish a thorough approval process, but it has historically taken a strong stand against cryptocurrencies, approving only a small number of companies for its digital asset licences.