Coinbase has received a new crypto custody license to operate in Germany.
The company has shown a commitment to work with national regulators.
Meanwhile, other crypto exchanges have fallen short of regulators’ expectations.
Share this article
Coinbase has become the first company to receive a crypto custody license to operate in Germany.
Coinbase Embraces German Regulation
Coinbase has been approved for a crypto custody license in Germany, according to a press release from the German financial supervisory body BaFin.
Legislation passed in the German parliament in 2019 required companies offering crypto custody services to apply for new licenses or cease operating in the country. The new legislation came into effect on Jan. 1, 2020, including precise guidelines for companies offering crypto-related services. While Coinbase is the first company to receive a license, German media outlet Handelsblatt hopes the legal clarity of the new bill will encourage more banks in Germany to offer services around crypto-assets.
Coinbase’s efforts to comply with government regulations are not limited to Germany. Last week, the company completed registration with the Japanese Financial Services Agency. Once registered, Coinbase can offer crypto trading of assets like Bitcoin and Ethereum to customers in Japan.
After going public via a direct listing in April, Coinbase reported Q1 profits of $771 million, tripling its earnings from the previous quarter. As Coinbase expands into new markets, having a firm foundation with regulatory backing continues to be a top priority.
In contrast to Coinbase, other cryptocurrency exchanges have come under scrutiny for their lack of regulation.
Japan’s Financial Services Agency recently issued a second warning to Binance for operating without registration (the exchange had been warned about operating without registering in 2018). Additionally, the U.K’s Financial Conduct Authority recently banned Binance from offering crypto derivatives in the country. Binance is also no longer serving customers in Ontario, Canada, due to regulatory pressures.
Whether Binance’s lack of regulation will have a lasting effect on the company’s operations remains to be seen. However, as crypto adoption increases, companies offering crypto services will need to tread carefully to avoid backlash from regulatory agencies.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Coinbase to Offer Crypto Exposure With 401(k) Provider
Thanks to a collaboration between Coinbase and ForUsAll, Americans will now be able to invest up to 5% of their 401(k) portfolio in crypto. Coinbase Partners with 401(k) Provider Coinbase…
Coinbase Pro Will Begin Trading Dogecoin On Thursday
Coinbase Pro will initiate Dogecoin trading on June 3, as revealed in a new blog post from the cryptocurrency exchange. Trading Begins in Two Days Coinbase says that it will…
Coinbase Visa Debit Card Adds Apple Pay, Google Pay
Coinbase is linking its debit card with Apple Pay and Google Pay. Coinbase Unveils Debit Card Update Coinbase has integrated Apple Pay and Google Pay into its debit card, the…
What is Kusama? How Polkadot’s playground accommodates blockchain de…
Kusama is relatively young and was founded in 2019 by Dr. Gavin Wood, who also founded the Web3 Foundation and co-founded Ethereum. The team behind Kusama is essentially the same…
Be the first to comment