Cryptocurrency exchange Coinbase has been granted permission to continue operating in Germany by the country’s regulator the Financial Supervisory Authority (BaFin).
In a press release, BaFin indicated that Coinbase is the first company to earn a crypto custody license in Germany. The license follows a 2019 legislation where the country’s parliament required companies in the crypto custody sector to apply for a permit or seize operations in Germany.
On January 1, 2020, firms with operations were supposed to show their intention to file for recognition by March 31. The official application was to be done by November 30.
Coinbase enters Japanese market
The regulatory clearance from Germany comes barely a week after Japan’s regulatory head FSA cleared the exchange to enter the country’s crypto market. Furthermore, Coinbase unveiled its plan to enter the Japanese crypto market back in 2018. The company said it will work with the Japanese FSA to ensure compliance with local laws at every stage.”
Notably, the approval also puts focus on Coinbase over its stand to cooperate with regulators in the crypto industry.
Since going public in April, Coinbase has recorded significant growth with a projected steady increase in users. Our previous projections show that by the end of 2021, the exchange will potentially have 70 million verified users. The figure also represents a growth of 30% from the Q1 2021 figure of 56 million.
The exchange’s user growth can be linked to building trust with Coinbase to pursue compliance with the strict crypto regulations. The company has also gained prominence from the April IPO, focusing on offering new products to institutions.
Elsewhere, venture capital firm Andreessen Horowitz backed by Coinbase recently announced a new $2.2 billion fund. The fund will be explicitly channeled towards cryptocurrency investment.