The exchange was mandated by Germany’s Federal Financial Supervisory Authority (BaFin) to ensure company organization.
The German branch of Coinbase was directed to guarantee suitable corporate structure by Germany’s Federal Financial Supervisory Authority (BaFin). The operations of Coinbase Germany violated criteria for effective corporate organization, according to Germany’s BaFin.
It claimed that the company’s organizational structure did not follow local laws. The authorities claimed that after conducting an examination of the exchange’s Germany division, “organizational shortcomings” were discovered.
Coinbase Germany Warned After Audit
The most recent announcement from German authorities is another one of many probes the cryptocurrency exchange is now dealing with in different jurisdictions. Although it’s unclear exactly part of the organization BaFin detected flaws in, it claimed to have done so. It showed that the business organization was inconsistent in all of the audited categories.
The order was given on September 27, 2022, according to a statement from the Federal Financial Supervisory Authority.“An audit of the annual financial statements revealed organizational deficiencies at the institute. The regularity of the business organization was not given in all audited areas.”
Europe Expansion Plans
The BaFin announcement coincides with the cryptocurrency exchange’s efforts to expand its market share in Europe. In reality, a senior executive from a German fintech company had been recruited by the American exchange.
As part of its aspirations to grow in Europe, Coinbase hired Daniel Seifert, the chief operational officer at Solarisbank, on October 17. Positively, the business just received regulatory approvals in the Netherlands and Italy.
In France and Spain, regulatory licensing approval is still pending for Coinbase. On the other hand, the cryptocurrency exchange fired thousands of workers in the United States earlier this year.
The share price of Coinbase ($COIN) has been moving lower over the past few days. The share price of $COIN has decreased by as much as 17.54% during the last five days, coming to $56.97 at the moment.
