On Tuesday, BaFin, the German Federal Financial Supervisory Authority, announced an investigation into RXK Management Ltd, citing the company's unauthorized provision of banking and financial services in Germany.

BaFin pointed out that under the German Banking Act (KWG), any company providing banking or financial services in Germany must obtain authorization, and RXK Management Ltd is not regulated by it.

RXK Management Ltd's website rxkcapital.com claims that the company is a currency pair and spread contract broker with the authority to recruit traders in various jurisdictions worldwide. Whether experienced or novice traders, the company's pricing, platform, deep liquidity, and customer service provide them with an advantage in market trading. BaFin suggests that investors conduct necessary investigations before investing in such platforms to avoid being deceived.

Previously, BaFin conducted investigations into several companies, including Ethereal Group LLC, StackFX Markets Ltd, and Seychelles, which provided financial services in Germany without authorization and were not regulated by the institution.