Germany’s BaFin warns against marijuana brokers

Germany’s BaFin warns against marijuana brokers

The financial regulator in Germany BaFin has issued a warning against a company by the name “Cannabis Trader” urging traders not to pay heed to its supposed offers. It is believed that the company is offering marijuana derivatives products without proper authorization from the authorities.

According to the watchdog “Cannabis Trader” is targeting German clients with proposals for buying CFDs on a handful of companies that are operating in the growing sphere of the cannabis industry.

Having in mind the rising popularity of cannabis, as well as “marijuana stocks” it comes as no surprise that the brokerages have discovered a silver lining and have begun offering clients such financial products. However, following the pattern of the cryptocurrency boom,  it is inevitable that scammers will join the party as well and begin spawning fraudulent offers with the hopes of taking advantage of overly-stimulated buyers.

Last year the cannabis industry in the US has experienced a massive boom with many companies expanding their capacity, as well the variety of their products. More countries are following the example of the US, motivated by the large state revenue that comes from taxing and regulating the product, instead of banning it. However, the cannabis industry, as with any new “big thing” on the market is bound to be plagued by scammers, potentially over-valued companies and fraudulent brokerages.

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