Germany’s financial regulator, the Federal Financial Supervisory Authority, also known as BaFin, issued a license to Major U.S. cryptocurrency exchange Coinbase to enable its local subsidiary to carry out cryptocurrency custody business in the country.
- BaFin announced the news of the approval via an official release on Monday (June 28, 2021). According to the German regulator, Coinbase was the first crypto exchange to get BaFin’s license to operate crypto custody services.
- Back in 2019, German lawmakers passed a law, stating that platforms wishing to operate a legal crypto custody service must obtain a license from BaFin. In 2020, there were reports that a minimum of 40 banks already applied to receive such approval from BaFin.
- With crypto custody license issuance being new for BaFin, the German financial regulator said it formed an “interdisciplinary, cross-divisional and cross-departmental team to deal with the complex issues relating to crypto custody business.”
- BaFin adds that Bitcoin and other crypto assets remain unregulated in Germany, and noted that its previous warning about crypto investments was still valid. Back in March 2020, BaFin classified cryptocurrencies as financial assets.
- Meanwhile, the current milestone for Coinbase comes after the company’s direct listing on Nasdaq in April 2021. In the same month, Coinbase revealed intentions to acquire UK-based analytics company Skew.
- Also, the U.S. crypto exchange giant is planning to raise $1.25 billion Convertible Senior Notes due 2026, via a private offering to institutional investors.
- Additionally, Coinbase’s CEO, Brian Armstrong, revealed plans recently to create a store for decentralized cryptocurrency applications, inspired by Apple and Google. He believes such innovation will enhance the adoption of the sector.