Coinbase Germany, a major US cryptocurrency exchange, has been approved by the Federal Financial Supervisory Authority (BaFin) for its custody business.
BaFin announced on the 28th. This is the first time BaFin has issued a license for a cryptocurrency custody business.
BaFin is a German supervisory organization equivalent to the Financial Services Agency of Japan. It was established in May of the same year with the enforcement of the Financial Services Supervision Act (FinDAG) in April 2002.
In March 2020, BaFin released new guidelines to consider Bitcoin (BTC) and other virtual currencies as “financial products.” At that time, a license system for custody companies was introduced.
Relation: German Financial Services Agency officially recognizes virtual currency as “financial product”
After the introduction of the licensing system, BaFin formed a team across specialized fields and departments to support the cryptocurrency custody business. And this time, for the first time, Coinbase was granted a custody business license.
While BaFin licenses the business, in March this year it warned individual investors that cryptocurrencies are risky and highly speculative. This warning is reiterated in this announcement, which licensed the custody business to Coinbase.
Relation: German regulators warn individual investors of cryptocurrency investment risk
Coinbase has announced that it will soon localize its service at Coinbase Germany to offer more products to its German customers.
About new listing of virtual currency
Coinbase CEO Brian Armstrong explained yesterday that the company’s goal is to list all cryptocurrencies on exchanges, to the extent permitted by law.
1/ Reminder about how Coinbase lists assets: our goal is to list *every* asset where it is legal to do so.
— Brian Armstrong (@brian_armstrong) June 28, 2021
Believing in the value of the free market, he insists that customers should have the option of cryptocurrencies over the economic zone. It also states that it plans to provide ratings and reviews for each stock in the future.
Armstrong explained why he plans to provide ratings and reviews, allowing customers to make more informed decisions and making it easier for the community to share their views.
Coinbase has recently been accelerating the pace of listing new stocks. This tendency is particularly strong this month, and recently announced on the 24th that ProBarnBridge (BOND), Livepeer (LPT), and Quant (QNT) will be listed on Coinbase Pro.
Relation: US Coinbase, 3 new cryptocurrency stocks listed
In order to expand the market for altcoin, name recognition and liquidity are important. For that reason, the market is aware of listing on major exchanges. In particular, Coinbase, which has a large market size, attracts attention.
Until now, not only was it listed on Coinbase, but even if it was announced that it was going to be listed, the phenomenon that the price of the virtual currency soared has been seen. The phenomenon of price increases due to the announcement of Coinbase listing is called the “Coinbase Effect”.