Coinbase is the largest cryptocurrency exchange based in New York, USA.
Recently, Coinbase obtained a permit from the German regulator to provide cryptocurrency custody services.
The new news was brought up by “Bloomberg” correspondent Walter Brandy-Mart.
The approval from the main regulator will allow Coinbase to operate in custodial, storage and other crypto services.
The regulatory authorization from the Federal Financial Supervisory Authority (BaFin) for Coinbase comes just one week after Coinbase received approval for its cryptocurrency exchange activity by the head of the Japan Financial Supervisory Authority to enter the Japanese crypto market.
Cryptocurrency trading company Coinbase was able to rapidly expand its service base after its recent listing on the Nasdaq Stock Exchange last April.
This will be the first license for crypto custody services offered by German “BaFin” under the newly introduced financial services based on the 4th European Union Guidelines.
BaFin has put together a multidisciplinary, cross-departmental, and cross-departmental team to deal with the complex issues related to the cryptocurrency custodian business that is the focus of licensing.
While Coinbase is making headway with regulators around the world, its rival Binance, the world’s largest cryptocurrency exchange by market capitalization, faces the scrutiny of regulators.
Just last week, the Japanese regulator issued a warning against Binance, and earlier in the day the UK banned Binance from offering its services in the country, with further news emerging that several UK banks have been stopped from supporting the withdrawal of funds from Binance.
Coinbase Continues To Expand Its Reach As Binance Declines:
Coinbase is gradually expanding its regulatory reach outside the US, and BaFin’s statement is a testament to that.
On the other hand, Binance, the world’s largest cryptocurrency exchange, is currently facing several regulatory setbacks.
Coinbase boasts more than 50 million registered users, with revenue of more than $1.5 billion in the first quarter of 2021.
Earlier this month, Coinbase also became the first crypto company to enter the US pension fund industry after partnering with ForUsAll.