Coinbase, the US-listed cryptocurrency exchange, announced on Monday that it had obtained a license from the German Federal Financial Supervisory Authority (BaFin) to provide crypto custody and trading services in Germany. As a result, according to the company, the firm will now operate as Coinbase Germany GmbH, subject to the licensing regime introduced last year.
With the resolution, the US-listed crypto firm is the first company to get issued such a license from the BaFin, which is the first-of-its-kind in the European bloc. “The licensure of Coinbase Germany is an exciting and logical next step in Coinbase’s international expansion journey. Germany is the world’s fourth-largest economy by GDP and is the only EU country to have introduced a full regulatory framework for cryptocurrency platforms. There is already a thriving blockchain scene, with Germany as the second-ranking country, only after the US, in terms of the number of Bitcoin nodes being run,” Coinbase stated in the announcement.
The brand-new Coinbase Germany is set to be launched in the coming weeks, the company said, and deploy new features and products with the local customer support team.
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“Being awarded the license is the culmination of many months of hard work from the Coinbase team, in close collaboration with the BaFin. We look forward to bringing a best-in-class crypto product offering coupled with a secure, localized experience to our German customers,” Marcus Hughes, Coinbase’s Managing Director for Europe, highlighted.
Recent FSA License
The announcement comes shortly after the Financial Services Agency (FSA) of Japan granted a permit to Coinbase, becoming the first Western firm to receive a license of its kind.
However, no good news regarding regulatory affairs has occurred in the last few days for Binance, a major crypto exchange, as the UK FCA (Financial Conduct Authority) had last weekend banned the firm from all regulated activities in the UK.