Coinbase Germany Is Inquired About By Financial Watchdog Internally
Following the discovery of organizational flaws during an audit of the company’s financial statements, Germany’s financial watchdog ordered the local branch of cryptocurrency exchange Coinbase to ensure it has effective risk management and internal controls in place, according to a statement released Tuesday.
The German Banking Act‘s requirements were broken, according to the Federal Financial Supervisory Authority, or BaFin.
The notification cited Section 25a (1) of the Act, which mandates that businesses maintain risk-bearing capacity, enough staffing, emergency management tools, IT systems, and open compensation structures for all personnel, including management.
Establishing suitable systems that make it possible to establish the institution’s financial condition with acceptable precision at all times is another necessity.
BaFin granted Coinbase Germany authorization to offer crypto custody services last year.
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