Cryptocurrency exchange platform Coinbase has announced that its German entity – Coinbase Germany GmbH – has today been granted a licence for crypto trading and custody by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) financial regulator.
The licence falls under the new crypto custody regime implemented in January 2020, and is the first of its kind in Europe. Coinbase is the first company in Germany to be issued with a licence.
The licence paves the way for the launch of Coinbase Germany in the near future, and with all services set to be subject to local regulatory oversight and protection, provides a clear, regulatory framework for increasing the service to German customers.
Coinbase’s licensed German entity will be able to leverage the Coinbase infrastructure whilst providing a localised German service and increased product offering under the supervision of BaFin, a leading European regulator.
Marcus Hughes, Coinbase’s Managing Director for Europe, said the granting of the licence was an important step in the eyes of regulators.
Months of hard work
“Being awarded the licence is the culmination of many months of hard work from the Coinbase team, in close collaboration with the BaFin,” he said.
“Becoming licenced in Germany is also an important milestone for Coinbase: it is reflective of our vision to enable economic freedom around the world.
“This marks another important step in our international journey, and we look forward to collaborating with other regulators around the world to enable the crypto ecosystem to expand.”
Sascha Rangoonwala, Coinbase’s country manager for Germany, added: “The licence stands as testimony of our commitment to providing our German customers with a safe, regulated environment in which to enter the crypto-economy. We are committed to increasing the use of crypto in the country, and we look forward to bringing a best-in-class product offering to our German customers.”
The announcement comes only days after rival platform Binance was given a ban from the UK’s Financial Conduct Authority following its effort to establish Binance Markets in London.
The contrasting fortunes of the two bids could now open Germany up to more opportunities from cryptocurrency platforms and exchanges keen to steer clear of tougher regulations.