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.
“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.”
UPDATE (June 28, 20:04 UTC): Adds comments from Coinbase and a German lawyer who worked on the exchange's BaFin application.
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