As the cryptocurrency craze enters yet another wave, Coinbase, a leading cryptocurrency buying and selling service, recently announced it is expanding to Germany.
Coinbase, which is based in the U.S. but has no fixed headquarters, is no doubt looking for additional markets while demand for such services is high. It has applied for and received a license for crypto custody and trading from the German Federal Financial Supervisory Authority (BaFin), under German regulations that took effect in January 2020.
"Being awarded the license is the culmination of many months of hard work from the Coinbase team, in close collaboration with the BaFin," Marcus Hughes, Coinbase managing director for Europe, said on the Coinbase blog. "We look forward to bringing a best-in-class crypto product offering coupled with a secure, localized experience to our German customers."
Being awarded the legal right to operate in Germany is a huge accomplishment for Coinbase. Where many others have failed when it comes to cryptocurrency regulations, Coinbase has been able to succeed, thanks to an obsessive devotion to remaining as compliant as possible in every aspect of its business. The crypto license issued to Coinbase was the first of its kind in Germany, giving the crypto giant a significant leg up on the competition looking to expand to Europe.
Binance is one such competitor. Binance has been chastised of late for its lack of compliance with relevant regulations. Though Binance is wildly popular among cryptocurrency traders, the platform has struggled to expand due to these regulatory challenges. Binance was recently banned from offering crypto derivatives in the UK and has been given a warning by Japan, Techstory reported.
Though Coinbase is undoubtedly pleased to be expanding into new markets, its revenue figures show that it is already doing quite well. Coinbase's profits have tripled from 2020Q4 to 2021Q1, Techstory reported. Coinbase is the go-to option for many retail investors to buy and sell cryptocurrency, and it has been around for years. As cryptocurrency becomes increasingly mainstream, Coinbase continues to look to expand to even more markets to further cement its position.