TL; DR Breakdown
- Coinbase has been approved to operate in the German market
- Germany is the first EU country to have clear crypto regulations
- Binance is facing a battle for the UK market
It’s good news for crypto fans in Germany and the industry in general as Coinbase makes a totally legal debut into the German market. This comes after the exchange managed to secure an approval from the country’s body in charge of financial regulations – the German Federal Financial Supervisory Authority (BaFin).The exchange took to twitter to announce the good news to the crypto world.
Coinbase Germany is the first
According to a post on Coinbase’s official blog, the exchange, through Coinbase Germany GmbH, has been licensed to offer crypto trading and custody services under new regulations that came into effect in January 2020. Apparently, Germany is the first and only member of the European Union (EU) to institute such clear financial regulations. Also, the exchange is the first relevant company to be awarded a license under the new policy.
This news could work to the exchange’s favor especially considering that Germany is the 4th largest economy in the world and is now the first EU country to have clear crypto regulations. This favorable environment will attract investors and traders, and Coinbase will be the go-to exchange for them. The exchange plans to use this advantage as a stepping stone to expand to other regions across the world.
UK Vs Binance
It appears that Germany could so far be the country that’s friendlier to cryptos than the United Kingdom. Besides being the first to regulate the industry, Germany’s regulator hasn’t had any notable clashes with crypto exchanges. On the other hand, while Coinbase enjoys a warm reception in Germany, Binance is getting booted out of the UK. The UK’s Financial Conduct Authority issued a warning against Binance and its associates operating in the country.
It’s still yet to be known how the exchange and the FCA plans to solve their problem or if the FCA will actually move to enforce the ban. It’s not uncommon for authorities to have protracted approaches and conflicting opinions about the industry.