Cryptocurrency exchange Coinbase has scored a major win for the crypto sector after becoming the first company to obtain a crypto custody license in Germany. The country’s Financial Supervisory Authority (BaFin) made the disclosure in a press release.
The license follows legislation by Germany’s parliament in 2019 requiring companies in the crypto custody sector to obtain an operational permit or seize operations in the country.
Germany is not the only country Coinbase has been able to conquer. The U.S. exchange secured regulatory clearance from Japan’s FSA less than a week ago. Back in 2018, Coinbase voiced its intention to enter the Japanese crypto market, noting that it will work with Japanese regulators to ensure compliance with local laws at every stage.
Aligning with regulators
Coinbase’s growth puts focus on the exchange’s position to cooperate with regulators. Recall that Binance was recently called out by German regulators following the launch of its stock token product. More recently, the crypto exchange is having a tough time in the UK.
Coinbase, on the other hand, has recorded significant growth since going public in April. This is largely due to the exchange’s compliance with strict crypto regulations.