The German Federal Financial Market Authority (BaFin) has granted Coinbase permission to trade and store cryptocurrencies in the country.
This is BaFin’s first regulatory license for cryptocurrency activities in all of Europe. Thus, in the coming weeks, the company will begin local operations in Germany for new and existing customers.
The German subsidiary Coinbase Germany GmbH received permission from BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht). The license obtained is part of a new cryptocurrency storage regime introduced in Germany in January 2020.
The resulting license effectively lays the foundation for the launch of Coinbase Germany, in particular for the custodian services provided by Coinbase Germany plus overseen and protected by the local regulator.
It is worth noting that in the past Germany has already allowed banks to sell Bitcoins, but without a company authorized to act as custodian of funds with a special BaFin license, it was almost impossible to start such activities in accordance with the law.