Coinbase Germany has received a crypto custody business license from BaFin to operate fully in Germany.
Germany’s Federal Financial Supervisory Authority, better known as BaFin, announced on Monday that it has granted Coinbase the country’s first crypto exchange license for custodying digital assets.
Due to the lack of precedence, the regulator stated it will assemble an interdisciplinary, cross-divisional, and cross-departmental team to manage potential crypto custody difficulties.
At the end of 2019, German lawmakers passed legislation requiring organizations wishing to operate as crypto custody businesses to obtain BaFin approval.
The new regulation took effect on January 1, 2020, however there was a grace period for crypto firms that had been operating in the country previously.
Businesses that “provide the exchange of virtual currencies for legal money and vice versa” or for other cryptocurrencies, according to BaFin’s comments on the aforementioned statute, are deemed financial institutions subject to regulation.
However, the regulatory body has previously warned potential investors that in the crypto field, there is little to no protection against losses for retail consumers, a warning BaFin underlined in its decision regarding Coinbase’s license.
Coinbase’s shares has fallen below Nasdaq‘s initial reference price of $250 after going public in the United States with a direct listing. COIN is currently trading at $239.49, down nearly 30% from its April 14 high.
