Coinbase has become the first exchange to get a cryptocurrency custody license from BaFin according to updated regulations.
German regulators have announced that Coinbase Inc. has been granted clearance to begin offering cryptocurrency services within the nation. The clearance from the Federal Financial Supervisory Authority (BaFin) is more good news for Coinbase after being accepted into the Japanese market last week by the FSA. Coinbase now has approval by the chief regulatory body of two new countries to act as custodians for other crypto businesses and services.
The Delaware-based company has been expanded quickly since its Nasdaq listing earlier in 2021. That expansion includes being the first exchange to enter the United States pension fund industry after a recent partnership with ForUsAll.
Coinbase is thriving while Binance is struggling with regulators
While Coinbase continues to lock down wins with regulators, their competition Binance has taken a lot of criticism recently. Coincidentally, right around the time that Coinbase was being approved in Japan, Binance was being warned by the very same regulators.
Likewise, Binance has a history with BaFin, who warned investors about possible violations of securities laws by Binance.
This morning came even harsher news as it was announced that Binance has been banned from offering its services in the U.K. The announcement comes after a recent statement from the United Kingdom’s Financial Conduct Authority (FCA). The word from the FCA is that Binance Markets Limited is not permitted to carry out the regulatory operations in the United Kingdom because it did not have the proper license to do so.
Much like the German authorities, the FCA also warned consumers of Binance and let it be known that Binance Markets was not allowed to trade without written consent by the FCA. While Binance remains the biggest player in the game, the tides are clearly shifting in favor of Coinbase as far as winning over regulators.
Binance argued that Binance Markets (BML) was separate from Binance and has not even launched its U.K. business.