- German regulator BaFin grants Coinbase a crypto custody license.
- Coinbase is the first firm to receive the license from the German regulator
- However, rival exchange Binance is under fire for failing to meet regulatory compliance
Coinbase has added a new cap feather after Germany’s Financial Supervisory Authority (BaFin) granted the exchange a new license. The license allows Coinbase exchange to continue operating in Germany as a crypto custodian.
BaFin announced the news on June 28 stating that Coinbase is the first company to be granted the license. BaFin added that several other firms are in the final stages of review for the same license.
Prior to this, German’s Bundestag parliament made it mandatory for firms offering crypto custody to be licensed. The government body made the announcement in 2019. In addition, Bundestag gave crypto firms up to November 30 2020 to apply for the license or leave the country.
As a result, Coinbase filed an application with BaFin in 2020. The review process has no fixed deadline as BaFin prefers to ask for more documents and questions throughout the review process.
In a recent blog, Coinbase expressed pride at finally passing the review process stating,
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.
The news comes at a time when crypto exchanges are facing increasing scrutiny. In fact, rival exchange Binance has been under fire for failing to meet regulatory compliance. Notably, Binance exited South Korea earlier in the year and has more recently exited Canada.