Bitpanda made the announcement in a post on its official blog that it has acquired a cryptocurrency custody licence from the German financial body known as BaFin.
After obtaining this licence, the cryptocurrency exchange with headquarters in Austria is now able to legally promote its services to people living in Germany. Additionally, Bitpanda said that it was the first retail cryptocurrency exchange operating out of Europe to accomplish this particular feat. The failure of the FTX cryptocurrency exchange has resulted in heightened attention being directed against unregulated cryptocurrency exchanges that are located outside of the jurisdiction of a particular nation.
Because of this, a great number of exchanges are working toward acquiring licences in a number of different countries so that they can demonstrate that they are legal. In addition to Austria, the United Kingdom, Italy, the Czech Republic, Spain, and Sweden, Bitpanda is now legally regulated in Sweden. This new licence adds to the list of countries in which Bitpanda is officially regulated.
Coinbase, Kapilendo, Tangany, and Upvest are the other four companies in the cryptocurrency industry that have successfully secured this licence in the past. The subsequent three are geared for institutional investors. Coinbase, which is situated in the United States, is a retail investing platform. Due to the fact that it is headquartered in Austria, Bitpanda claims that it is the first “European” retail cryptocurrency platform to get the licence.
The acquisition of this licence, as stated by Eric Demuth, Chief Executive Officer of Bitpanda, “was the product of many months of hard effort by the whole Bitpanda team.” He claimed that the firm is now in a position to show to German consumers that it is an honest and trustworthy custodian of cryptocurrency assets.
Since the failure of FTX, the question of how to provide licences to and otherwise govern cryptocurrency exchanges has been at the forefront of public discourse. Jon Cunliffe, Deputy Governor of the Bank of England, has disclosed that the BoE intends to create a “regulatory sandbox” to explore ways to effectively regulate exchanges. Concurrently, the United States Senate has initiated a hearing to consider how to effectively regulate cryptocurrency exchanges.
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