BaFin’s Allegations BUSTED! Bake Vindicated from Regulatory Claim

• Germany’s BaFin withdraws advisory on Bake’s alleged unauthorized financial services.
• Bake demonstrated compliance by removing the German language and adjusting the affiliate program for German customers.
• The company anticipates MiCA’s finalization in Europe, having readied with a license in Lithuania.

Germany’s Federal Financial Supervisory Authority (BaFin) has officially withdrawn the advisory notice it issued on January 7, 2022, regarding Bake’s (formerly Cake DeFi) alleged unauthorized banking or financial services in Germany.

After a period of thorough consultations and constructive engagement with the German regulatory body that spanned over one and a half years, Bake’s legal counsel successfully convinced BaFin to retract its previous advisory. The advisory had claimed that Bake was operating without the necessary license in Germany.

The compliance process involved various actions taken by Bake, including the removal of the German language from their website and app, as well as adjustments to their affiliate program for German customers. These measures aimed to address BaFin’s concerns and demonstrate the company’s commitment to adhering to local regulations.

In a statement, BaFin confirmed that Bake’s adjustments had satisfied their requirements, stating:

“…with these adjustments, there is no longer any justification to presume that Cake Pte. Ltd. is conducting unauthorized banking or financial services in the Federal Republic of Germany via cakedefi.com. Consequently, we are retracting the advisory issued on 07.01.2022.”

Bake expressed gratitude to all its loyal customers and partners worldwide for their unwavering support throughout the regulatory process. The company emphasized its dedication to maintaining compliance with local regulations in every jurisdiction.

Additionally, it showed a willingness to engage in open dialogues with regulatory authorities to ensure transparency and legal compliance.

CEO of Bake, Julian Hosp, who had previously shared his excitement on Twitter, commented, “Excited to see all the outlets and influencers that were so eager to report on the investigation, now clarifying that it was concluded and the notice removed. Outlets that don’t do so, are not there to inform you, but just to manipulate you.”

Furthermore, Bake also revealed that they are anticipating the finalization of Markets in Crypto Assets (MiCA) in Europe, for which they have already made all necessary preparations with their license in Lithuania.

With the resolution of the regulatory issue with BaFin, Bake looks forward to continuing its operations in Germany and beyond, with a renewed focus on providing secure and compliant financial services to its users. The company views the collaboration with BaFin as a successful example of seamless and constructive regulatory engagement.