Coinbase Germany is the first company ever to receive permission from BaFin to carry out crypto custody business in Germany. And that comes at just the right time: Coinbase has some plans in this country.
At least since Coinbase debuted on the New York stock exchange Nasdaq, the leading crypto platform has been on everyone’s lips. As the first crypto trading platform ever, Coinbase had dared to step onto the trading floor. But there is a lot going on in terms of expansion not only across the pond. The company, which was founded in 2012 by Brian Armstrong and Fred Ehrsam, wants to really take off in this country too. German customers have been able to invest in Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Co. via Coinbase for some time. Recently, however, the German subsidiary of the US successful company also received the regulatory approval from BaFin: Coinbase Germany is now the first company ever to call itself a “regulated crypto custodian” within the meaning of German law and thus offer cryptocurrencies for trading and custody under the supervision of BaFin.
“The granting of the licenses is the culmination of months of hard work by the Coinbase team, in close cooperation with BaFin,” says Sascha Rangoonwala, Country Manager for Coinbase in Germany.
Sascha Rangoonwala, source: Coinbase
The licenses in Germany are also an important milestone for Coinbase. They underscore our mission to lead the way in increasing economic freedom around the world. This is another important step in our international journey […].
Sascha Rangoonwala, Country Manager Coinbase Germany
The approval has promising consequences for both Coinbase and the local crypto scene. After all, with Coinbase Germany, users in this country will for the first time have access to a crypto platform that has been approved by the regulator – a significant gain in terms of integrity and security.
Coinbase product offering is growing
With over 60 coins and tokens – including BTC, LTC, ETH but also exotic ones such as Dogecoin (DOGE) and Cardano (ADA) – Coinbase has always been one of the pioneers of the crypto industry. The user interface is also considered to be user-friendly, stable and clear; you can read more in our guide entry.
Support was one of the few negative points in our guide. Coinbase praises improvement here, especially with regard to the German market. The company will make 70 German-language help articles available to its local customers at the beginning of September, with a further 230 articles to follow later. E-mail support is also being set up and should be available in German from September.
As we were assured, the product range will be expanded again in the course of regulation as a crypto custodian. Coinbase now offers a staking service for proof-of-stake coins (PoS) such as Cosmos (ATOM) or Tezos (XTZ) in Germany. Here customers can pass on excess crypto liquidity to the broker. The company then delegates the coins to one of its nodes and thus generates passive income for the customer. In a crypto world in which PoS is becoming an increasingly popular consensus mechanism, this business model in particular is likely to gain more and more approval. The second largest cryptocurrency, Ethereum, is also currently switching from Proof-of-Work (PoW) to Proof-of-Stake.
And then there is Coinbase Earn. On the platform, crypto enthusiasts can satisfy their thirst for learning and even earn tokens in the process. The product range is enormous. Coinbase Earn has videos and explanatory texts for no less than 24 coins and tokens on offer. For example, if you complete the online course on Stellar Lumen (XLM), you will receive a full 10 US dollars in XLM as a reward.
With the BaFin license, the company can celebrate a huge success; however, the real winners of the coup are undoubtedly the customers.
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