Germany’s Federal Financial Supervisory Authority (BaFin) has surprised everyone by announcing to issue a a custody business license to Coinbase. This is the first time ever that a cryptocurrency exchange has been given this authorization by Germany.
The financial regulator in Germany has decided to create an inter-departmental, inter-divisional, and inter-disciplinary team for managing issues related to the custody of cryptos. By the end of 2019, the lawmakers of Germany adopted a law, according to which the cryptocurrency exchanges were required to get authorization from BaFin and comply to the laws of the land.
However, on January 1, 2020, a new law came into existence. It provided the crypto companies, which are already operating in Germany, a transition period. This important international expansion came just weeks after Coinbase launched 9 new pairs in the stablecoin market.
German regulator’s decision of giving custody business license to Coinbse has surprised many because just two months back Federal Financial Supervisory Authority (BaFin) had issued a warning about offering tokenized versions of Binance shares. With BaFin issuing custody business license to Coinbase, Germany paves way for embracing cryptocurrencies.
A bill was recently passed by the German Federal Parliament that authorized the unlisted investment fund. This fund is reserved for accredited investors and financial institutions, where they can invest in cryptomonnaies from July 1, 2021. With this relaxation of regulations on cryptocurrencies, over 4,000 funds are going to be benefitted.
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