Coinbase has become the first exchange to receive a cryptocurrency custody license from BaFin in accordance with the latest regulations.
The German regulator announced that Coinbase Inc. has been approved to offer cryptocurrency services in the country. Following the approval by the FSA to enter the Japanese market last week, the approval of the German Federal Financial Supervisory Authority (BaFin) is good news for Coinbase. The crypto exchange has now been approved by the main regulators in the two new countries to act as custodians for other crypto companies and services.
Coinbase has grown rapidly since it went public on the Nasdaq in early 2021. This expansion includes becoming the first exchange to enter the US pension fund industry following our recent partnership with ForUsAll.
Coinbase Succeeding Where Binance is Failing
While Coinbase continues to win with regulators, Binance has received a lot of criticism lately. Coincidentally, Binance was warned by the same regulators, just as Coinbase was approved in Japan.
It was announced yesterday that Binance has been banned from providing services in the UK. The announcement follows a recent statement from the UK’s Financial Conduct Authority (FCA). The message from the FCA is that Binance Markets Limited is not allowed to conduct regulatory business in the UK as it does not have the appropriate authorization.
Much like the German authorities, the FCA also warned Binance consumers, letting people know that Binance Markets cannot trade without the FCA’s written consent. While Binance is still the biggest player in the game, the tide is clearly shifting in terms of attracting regulators in support of Coinbase.
Binance argues that Binance Market (BML) is separate from Binance and has not even started its UK business.