Share this article
Coinbase Receives Crypto Custody License From German Regulator BaFin
The license will allow Coinbase to continue operating in Germany.
Updated Sep 14, 2021, 1:17 p.m. Published Jun 28, 2021, 3:30 p.m.
Coinbase has received a crypto custody license from Germany’s Financial Supervisory Authority (BaFin), allowing Coinbase to continue serving the German market. BaFin announced the news Monday.
STORY CONTINUES BELOW
Coinbase is the first company to receive the license, BaFin said in a press release.
In November 2019, Germany’s parliament – the Bundestag – passed a law that required firms custodying crypto for Germans to apply for a crypto custody license or leave Germany. Companies that were already operating in the country on Jan. 1, 2020, were required to announce their intent to apply by March 31 of that year and apply by Nov. 30.
Coinbase applied for the license in the late spring of 2020, said Carola Rathke, partner at Eversheds Sutherland, a German law firm that advised Coinbase on the project.
There are other crypto custody applications that are also in the "advanced stage" of the review process and will probably receive decisions from BaFin in the coming months, Rathke added. BaFin has no hard deadline for responding to questions and may ask applicants questions or request more documents from them over time.
In response to receiving the license, Coinbase plans to localize its services and expand its product offering in the country, according to a blog post published by the company.
“Being awarded the licence is the culmination of many months of hard work from the Coinbase team, in close collaboration with the BaFin," Marcus Hughes, Coinbase’s managing director for Europe, said in the post. "We look forward to bringing a best-in-class crypto product offering coupled with a secure, localized experience to our German customers.”
The approval comes at a time in which Coinbase is trying to prove itself to be an exchange that embraces regulation after having gone public in the U.S. via a direct listing in April.
Read more: Coinbase Enters Japanese Market After Completing Registration With Financial Watchdog
At the same time, Coinbase rival Binance has been warned by regulators to stop operating in the U.K. and Japan, and has pulled out of Canada’s Ontario province to avoid scrutiny from the Ontario Securities Commission (OSC).
UPDATE (June 28, 20:04 UTC): Adds comments from Coinbase and a German lawyer who worked on the exchange's BaFin application.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
South Korea’s long-awaited crypto law stalls over who can issue stablecoins
The Digital Asset Basic Act is stalled as regulators clash over who should be allowed to issue won-pegged stablecoins, extending uncertainty in one of Asia’s most active crypto markets.
What to know:
- South Korea's Digital Asset Basic Act is delayed due to disagreements over stablecoin issuance authority.
- The Bank of Korea insists only banks with 51% ownership should issue stablecoins, while the Financial Services Commission warns this could hinder innovation.
- The deadlock may delay the bill's passage until January, with full implementation unlikely before 2026.
Top Stories
