TBBOB In this KaratGold review we have a look at the KBC coin and give you reasons to stay away from it.
What is KaratGold about
KaratGold says that its mission is to create an infrastructure that will bridge conventional and blockchain financial systems.
The project has several subprojects, from a future mobile phone, an exchange, payment service to an allegedy physical gold mine in Madagascar.
The biggest attraction for outside investors presumably is the cryptocurrency KaratGold Coin (KBC), which supposedly is backed by real gold. But is it?
Stay away from KaratGold
The reason why we are publishing this review is that according to the German financial regulator BaFin KaratGold is an illegal issuer of electronic money.
The KBC coin is in fact a liability, a security, since it is supposed to be backed by gold. The offering of such coins is subject to regulation, you have to have a license valid in every country you want to sell your coin in.
The BaFin has stated that KaratGold is not authorized to provide electronic money, therefore the regulator issued a cease and desist order to the Karatbit Foundation.
This order is of course valid in Germany only, but if the KaratGold Coin is deemed to be a security in Germany, you can be pretty sure that the same judgement is valid for the entire EU. And it is extremely likely that regulators in the US, Canada, Australia etc. will have the same opinion about KBC being an unauthorized security.
Once more rulings of this kind come out, you can expect the price to tank.
KaratGold review conclusion
According to the German financial regulator, the KaratGold Coin is an unauthorized security, therefore we recommend staying away from it!
For crypto trading it is better to stick with proven cryptocurrencies and regulated brokers.
