The Netherlands Authority for the Financial Markets (AFM) has fined online crypto and stock trading platform BUX €1.6 million for using financial influencers, or “finfluencers,” to recruit new customers.
The regulator ruled that BUX’s referral practices violated industry regulations by creating financial incentives that did not align with consumer interests.
According to the AFM, BUX operated an “affiliate program” and a “friends program” that paid referral fees to finfluencers, comparison websites, and existing customers for directing potential new clients to the platform.
Regulator Warns Commission-Based Incentives Are Banned
The regulator stated that such commission-based incentives are banned to ensure that investment firms prioritize customers’ best interests.
“The ban on commissions ensures that investment firms put the interests of the customer first. It prevents consumers from being steered in a direction that may not serve their best interests due to financial incentives,” the AFM stated.
The regulator argued that by compensating finfluencers, BUX encouraged them to promote the platform indiscriminately, prioritizing referrals over investor suitability.
The fine was officially issued on November 18, 2024. BUX, which was acquired by Dutch banking giant ABN Amro last year, has since ceased its referral fee practices.
BUX CEO Yorick Naeff acknowledged that the platform halted referral payments in April 2023 and that ABN Amro was aware of AFM’s concerns at the time of the acquisition.
Naeff defended BUX’s marketing strategy, stating that the referral program was never detrimental to customers.
However, he expressed concerns over the unclear scope of the Dutch ban on commissions.
While BUX initially contested the fine in court, the court ruled in favor of the AFM. The company is still considering whether to pursue further legal action.
BUX Financial Services Acquired by Asseta Holding
In a separate development, BUX Financial Services has been acquired by Asseta Holding, the parent company of UAE-based investment firm APM Capital.
This follows ABN Amro’s takeover of BUX’s Dutch operations, which function as a neo-broker.
BUX’s UK unit, previously regulated by the Financial Conduct Authority (FCA), provided contracts for differences (CFDs) and financial spread betting services under the BUX Markets brand.
However, before the acquisition, BUX Markets had already shut down to reassess its product offerings.
The company’s Cyprus-based entity, BUX Europe Limited, also discontinued its Stryk-branded CFDs platform and transferred customer accounts to AvaTrade, though it still retains a Cyprus Investment Firm (CIF) license.
As reported, earlier this year, Coinbase acquired BUX Europe Limited.
The rebranded entity, now called Coinbase Financial Services Europe, is listed on the Cyprus Securities and Exchange Commission (CySEC) registry, as shown in a screenshot shared by the publication.
The acquisition provides Coinbase with a Cyprus Investment Firm (CIF) license, a pivotal regulatory approval enabling the exchange to expand its operations across the EEA.
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