Coinbase Germany receives BaFin license for crypto custody business


Coinbase Germany is the first German crypto company to receive official approval from BaFin. This means that nothing stands in the way of expansion in Europe.

Since the Bundestag passed the law implementing the amending directive to the fourth EU money laundering directive at the end of 2019, there has been something like crypto regulation in Germany. However, the law has not really fallen on fertile ground so far – although in theory there would be a framework for fully regulated Bitcoin companies. As of yesterday (Monday, June 28th) there is a first success to report.

The US Bitcoin exchange Coinbase was the first crypto company to receive official approval as crypto custodian. In legal terms, BaFin has given Coinbase Germany GmbH “permission to carry out the crypto custody business”. Coinbase Germany is thus the first crypto exchange fully regulated by BaFin grace that is allowed to operate crypto custody business within the meaning of the updated Banking Act. This emerges from a press release from the company.

The permit shows: BaFin is quite capable of acting and is ready to issue corresponding licenses to companies. Above all for local customers, there is a clear advantage of the permit. After all, the authority will now supervise Coinbase Germany, which will create a clear regulatory framework for the provision of the range of services for German customers. According to BaFin information, with the adoption of the EU Anti-Money Laundering Directive, the supervisory authority has also put together a cross-divisional and cross-departmental team to deal with complex issues relating to crypto custody business. BaFin’s crypto competence is therefore likely to be on the up.

“The granting of the licenses is the culmination of months of hard work by the Coinbase team, in close cooperation with BaFin,” says Marcus Hughes, Managing Director for Coinbase in Europe. “The licenses in Germany are also an important milestone for Coinbase. They underscore our mission to lead the way in increasing economic freedom around the world. This is another important step in our international journey […]. ”

As the leading European supervisory authority, the license allows Coinbase not only to operate in Germany, but also to expand in other European countries.

Coinbase stock benefits

However, it is unclear whether the product range on Coinbase Germany will also change with the permission. After all, the US-based company also made an appearance before the license. So crypto enthusiasts have been able to invest in Bitcoin and Co. via Coinbase for some time. A corresponding press inquiry remained unanswered by the editorial deadline.

As expected, the Coinbase share price received the news well: At the moment, the title (WKN: A2QP7J / ISIN: US19260Q1076) is 3.2 percent up on the previous day. On a weekly basis, COIN is even 12.3 percent up.

Does Coinbase keep what it promises? In the BTC-ECHO guide we put Coinbase through its paces. The review can be found here.