The Federal Financial Supervisory Authority (BaFin) has given the cryptocurrency exchange Coinbase the green light. In particular, Coinbase is approved for carrying out crypto custody transactions in Germany.

In a press release on June 28, the Federal Financial Supervisory Authority (BaFin) approved Coinbase to provide a cryptocurrency note service. This means that the Coinbase headquarters in Germany is the first company to do business in connection with crypto currencies.

Since this is a new business model, BaFin has also created an interdisciplinary, cross-departmental team in this announcement that looks after all matters relating to the crypto custody business.

In 2020, the German regulatory authorities passed a law that enables companies to offer crypto custody services. The prerequisite, however, is that these units require the approval of BaFin.

Coinbase Germany’s approval comes two months after BaFin issued a warning about Binance’s share token offer. The regulator declined Binance’s request to remove the warning. According to German law, securities and other “investment products” such as crypto shares may not be sold without approval, the BaFin announced.

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