The plan of Bitmex-Top-Execs to take over a Deutsche Bank falls through

The plan of Bitmex-Top-Execs to take over a Deutsche Bank falls through

Plans for the takeover of Deutsche Bank Bankhaus from Heydt by BXM Operations AG, a company founded by Bitmex managers, reported reportedly German. .

The company, founded by Bitmex CEO Alexander Höptner and Chief Financial Officer Stephan Lutz based in Germany, announced the deal for the first time in January as part of Bitmex's more comprehensive European expansion goals. Germany is a particularly ideal location due to the country -friendly economy, said Lutz, who also works as a CFO of BMX Operations AG.

experts assume that the failed takeover will probably be attributed to problems with the Federal Financial Supervisory Authority, better known as BaFin, the financial supervisory authority in Germany.

"The German regulatory authority is strict and if not all ducks were in a row, they would reject," said Michael Klena, managing director of Architect Partners, a consulting firm for mergers and take over. "The fact that they canceled and not delayed indicates that BaFin was not satisfied with Bitmex/BMX Ops."

Bitmex was confronted with regulatory problems in the past. In October 2020, the cryptocurrency exchange and the trading platform for derivatives for derivatives were charged by the US Commodity Future Trading Commission (CFTC) because it had not offered authorized trading services. Bitmex later agreed to a comparison with the CFTC and the Financial Crimes Enforcement Network (fincen) over $ 100 million.

However, there are still problems with the situation, Klena pointed out.

"Very few regulatory authorities would approved anything until other regulatory matters have been clarified," he added.

There could also be other explanations for failure, said Klena, such as another bidder, but the deal was a hard fight from the start.

"That was a surprising deal when he was announced, and only the most trustworthy institutions could practically pull him through," said Eric Risley, managing partner at Architect Partners. "Bitmex does not fall into this category."

The Bankhaus from Heydt has been digital-asset-friendly for some time. In October, Munich Bank announced plans to expand into crypto banking through a custody contract with Fireblocks and thus become one of the first banks to offer crypto services in the region. In addition to the custody, the Bankhaus from Heydt currently offers blockchain payment services.

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The contribution Bitmex Top Execs' Plan to Acquiring German Bank falls through is no financial advice.