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- Coinbase now becomes the first owner of the license issued by BaFin for crypto custody business to continue its business as financial services.
- In 2019, the German parliament mandated all companies to apply for a license to continue their business.
- The companies who were still working the country after January 1, 2020 were required to state their intentions of applying by March 31.
Germany’s Financial Supervisory Authority (BaFin) has finally granted a license to Coinbase. Now the blockchain firm can freely continue to carry on its crypto business in the German market. Coinbase is an US-based digital wallet that allows consumers and merchants to easily transact using crypto assets. The firm offers a variety of services including custodial accounts for institutions, a robust trading platform and investment platform, a wallet for retail customers and its very own stablecoin. The company was established back in 2012 and is a fully regulated and licensed cryptocurrency exchange supporting all U.S. states except Hawaii.
Germany’s New Law Bought Clarification to Crypto Regulation
Coinbase now becomes the first owner of the license issued by BaFin for crypto custody business to continue its business as financial services. Back in 2019, the German parliament mandated all companies to apply for a license to continue their business. Failing which, they must leave Germany immediately. The companies who were still working the country after January 1, 2020 were required to state their intentions of applying by March 31 of that year and apply by November 30, 2020. The new legislation only allowed banks to be more confident towards the sales and custody of cryptocurrency assets.
Coinbase Trying to Act as an Exchange That Abides by All Security Policies and Regulations
Before the law, German officials seemed pretty indecisive about having to offer services on digital assets. But this law passed by the Bundestag – and the Federal Council which implemented the fourth EU Money Laundering Directive, brought immense clarity to the businesses as well as regulators. Coinbase on the other hand is trying to act as an exchange that abides by all regulatory and security policies. In April, Coinbase went public through a direct listing. Coinbase CFO Alesia Haas, said that the direct listing would allow all kinds of investors to participate.
Coinbase’s listing has acted as a catalyst for other crypto companies as it became one of the largest crypto exchanges to be directly involved with the stock market. However, noted rival has received warning from regulators to halt their operations in the U.K. and Japan. In addition, the crypto exchange has also been pulled out of service in the Ontario region of Canada. The exchange chose to withdraw instead of having to face the hard consequences of not complying with the Ontario security laws.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
