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Bitpanda acquires a German cryptocurrency licence as crypto platforms seek to establish their legitimacy

Bitpanda acquires a German cryptocurrency licence as crypto platforms seek to establish their legitimacy

In the cryptocurrency sector, everyone is presently watching the demise of FTX. The Bitpanda news from today is significant for the Austrian unicorn company because of this. Bitpanda has been granted a cryptocurrency licence by Germany’s financial watchdog (BaFin).

Now that it has a licence for Crypto Custody and Proprietary Trading, its German business is formally permitted to process cryptocurrency for German clients. It is not required to rely on passporting regulations. Although there are many crypto licences in Europe, just four organisations are included in BaFin’s database as licenced crypto custody companies, indicating that BaFin’s licencing is extremely selective.

Coinbase is the other prominent business listed in the database. Although it is a U.S.-based company, it has a licence that is comparable. It is the first retail investment platform in Europe, according to Bitpanda, to meet these requirements.

Along with its licence from the German financial regulator, Bitpanda also holds licences from the financial regulators in Austria and France. As Bitpanda tries to grow its white-labeling business, these licences offer a big benefit when it comes to developing partnerships with other European fintech firms. As an illustration, Lydia and Bitpanda have partnered to allow Lydia to provide customers stock and cryptocurrency trading. In France, where Lydia is particularly well-liked, more than 5.5 million individuals use it.

Recently, N26 began offering cryptocurrency trading in Austria. This is just the beginning as the German mobile bank seeks to open up new markets for cryptocurrency trading. Bitpanda’s applications for licences in France and Germany undoubtedly had an effect on these collaboration conversations.

Co-founder and CEO Eric Demuth said in a statement that the company “sets the greatest standards for itself and remains fully devoted to doing things correctly, and doing the right things.” In my opinion, this notion is essential to the long-term survival of our sector and is deeply ingrained in our DNA as a fully regulated investing platform.

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Bitpanda has regulatory permits in the Czech Republic, Sweden, Italy, Spain, France, Germany, Austria, and the U.K. in addition to France, Germany, and Austria. With the Markets in Crypto Assets (MiCA) rule, as noted by Coindesk, there are intentions to harmonise regulatory frameworks for cryptocurrencies at the EU level.

There will therefore be more announcements of regulations in the future. Even if Bitpanda doesn’t mention FTX specifically, it is obvious that the business wants to come across as a trustworthy organisation to European investors. According to FTX’s support website, FTX operated in Europe via K-DNA Financial Services Ltd., an investment company that was accredited by the European Economic Area and subject to regulation by the Cyprus Securities and Exchange Commission.

“We aim to provide our customers an easy, risk-free option to invest. That entails regulation and a strong separation of client and business assets, both of which are regrettably not universally observed today, according to Demuth.

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