Coinbase Becomes Germany's First Crypto Custody License

Germany’s BaFin has stated that Coinbase is now authorized to conduct proprietary trading and cryptocurrency custody services through its local subsidiary, Coinbase Germany GmbH.
“On June 28, 2021, the German Federal Financial Supervisory Authority approved Coinbase Germany GmbH to provide proprietary trading and cryptocurrency custody services, limited to crypto assets and bookkeeping.”
The momentous announcement makes Coinbase’s local subsidiary the first crypto company to receive a license from BaFin to provide crypto custody services in the country.
“Coinbase Germany GmbH is thus the owner of the first license issued by BaFin for crypto custody business, a newly introduced financial service.”

Earlier reports indicated that by February 2020, Germany’s Federal Financial Supervisory Authority had received more than 40 applications from local banks for Bitcoin custody rights, including Solarisbank, the first German bank to offer digital asset services.
Germany's Financial Supervisory Authority said the license should be fully compliant with the law.
BaFin added that the new business model is based on the EU’s fourth anti-money laundering directive, which was approved in 2015 and came into force on June 26, 2017.
The directive adds tax evasion and other serious fiscal offences to the list of existing offences, meaning more transactions must be monitored and customer due diligence conducted on more clients.
According to the German Financial Supervisory Authority, the crypto custody regulatory model has been extensively studied and reviewed to adequately address the complex landscape of the cryptocurrency market.
“According to the German Financial Supervisory Authority, an interdisciplinary, inter-group and inter-departmental team has been set up to deal with the complex issues related to crypto custody business.”
Coinbase continues to establish its global market position as a leader in the crypto industry.

The news further establishes Coinbase as a leader in North American crypto startups with a strong base both inside and outside the United States.
Coinbase went public through the Nasdaq with a valuation of nearly $100 billion on April 14, 2021, and its current valuation is approximately $56.67 billion.
The company remains a popular one for many regulators in North America and Europe as it is considered to strictly adhere to the regulatory guidelines set forth by the United States and other regulatory jurisdictions.
In 2018, Coinbase launched its crypto asset custody business to address the security, regulatory and operational challenges posed by the cryptocurrency market.
Its services include crypto deposits and withdrawals from custodial accounts and staking, covering a wide range of crypto assets including Bitcoin, Ethereum, Cardano, XRP, USDC Coin, Polkadot, Uniswap, Bitcoin Cash, Litecoin, and Chainlink.
Coinbase Custody is considered the most trusted in the world, backed by industry-leading insurance policies and transparency for customers. In addition to New York, San Francisco, and Chicago, its custody services are also available to customers in London and Dublin.