Coinbase makes an entirely legal debut in the German market, which is great news for crypto enthusiasts and the sector in general. This comes after the exchange received clearance from the German Federal Financial Supervisory Authority, which is in charge of financial laws in the nation (BaFin). The conversation turned to Twitter to share the good news with the cryptocurrency community.
The first is Coinbase Germany
Coinbase Germany GmbH, according to a post on the exchange’s official blog, has been permitted to offer crypto trading and custody services under new laws that took effect in January 2020. Germany appears to be the first and only member of the European Union (EU) to enact such strict financial laws. The exchange is also the first firm to be granted a license under the new rules.
This news might be beneficial to the exchange, mainly because Germany is the world’s fourth-largest economy and the first EU country to have clear crypto rules. Coinbase will be the go-to exchange for investors and traders because of the favorable atmosphere. The exchange intends to utilize this advantage as a springboard for expansion into other parts of the world.
Binance vs. the United Kingdom
Germany looks to be the country that is kinder to cryptos than the United Kingdom thus far. Apart from being the first to oversee the industry, Germany’s regulator has had no significant conflicts with cryptocurrency exchanges. Coinbase, on the other hand, is enjoying a warm welcome in Germany, while Binance is being kicked out of the United Kingdom. The Financial Conduct Authority of the United Kingdom has issued a warning to Binance and its affiliates operating in the nation.
It’s still unclear how the exchange and the FCA intend to resolve their issue or whether the FCA will enforce the prohibition. It’s relatively unusual for government officials to take long approaches and hold opposing viewpoints on the business.