Coinbase obtains the first EU license in Germany

“Receiving the license,” commented Coinbase Managing Director for Europe Marcus Huges, “represents the culmination of many months of hard work by the Coinbase team, in close collaboration with BaFin. Having the authorization in Germany is also an important milestone for Coinbase: it reflects our vision of making economic freedom possible around the world. This is another important step in our international journey and we look forward to collaborating with other regulators around the world, to allow the growth of the crypto ecosystem. “In the coming weeks, the German subsidiary Coinbase Germany GmbH will launch its local activities for new and existing customers. The German provisions are part of a new anti-money laundering legislation that has come into force just over a year ago, integrating the broader European legislation on the subject. The BaFin had specified its guidelines for cryptocurrency custody services, established undermining their status as financial instruments, and therefore broadening the definition to digital assets, even if not issued by public bodies or central banks, but which people exchange electronically and accept as a payment system, or for investment purposes. With the granting of the license, Coinbase Germany will be able to provide its services under the supervision and protection of the financial authority, in a clear regulatory framework which, Coinbase adds in its press release, “allows the range of services offered to German customers to grow. “Germany had authorized banks to sell bitcoins, but there was no company authorized as custodian of funds with a BaFin license, making it virtually impossible to operate under the law. With the license granted to Copinbase, however, the way could be opened for a collaboration with banks, which would provide cryptocurrency trading services by relying on Coinbase for exchange and custody, all within a sphere regulated by the financial authority. Coinbase had applied for BaFin authorization in the spring of 2020, and it was the first company to which it was granted, although other questions are already in an advanced stage of evaluation and the decision is expected in the coming months. These are steps that aim to get the crypto world out of the regulatory gaps in which it is living, and that Coinbase has decided to embrace with enthusiasm by setting itself up as an exchange willing to work within all the legal limits. April 2021, it also arrived in Japan last week, where it announced that it will work closely with the local financial supervisor to ensure maximum transparency and compliance with the regulatory framework at all levels. This is while rival Binance has received warnings from both British and Japanese authorities and has decided to withdraw from the market in the Canadian province of Ontario following actions by the Ontario Securities Commission against other exchanges.

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