In an official Bitpanda blog post he announced that it has secured a license for custody of cryptocurrencies from the German financial authority BaFin.
After obtaining this license, the Austrian-based crypto exchange can now legally offer its services to residents of Germany. Bitpanda also claimed to be the first retail crypto exchange based outside of Europe to achieve this distinction.
The collapse of the FTX crypto exchange brought increased scrutiny of unregulated crypto exchanges that operate outside the country’s jurisdiction. For this reason, many exchanges try to obtain licenses in multiple countries to prove that they are legitimate. This latest license adds to the list of countries where Bitpanda is officially regulated, including Austria, the United Kingdom, Italy, the Czech Republic, Spain, Sweden and France.
Four other cryptocurrency-related companies previously acquired the license: Coinbase, Kapilendo, Tangany and Upvest. The last three serve institutional investors. While US-based Coinbase is a retail investment platform. Bitpanda claims to be the first “European” retail crypto platform to receive a license as it is based in Austria.
Bitpanda CEO Eric Demuth told Cointelegraph that this license “is the result of many months of hard work by the entire Bitpanda team.” He stated that the company can now prove that it is an honest and trustworthy custodian of crypto-assets for German customers:
“We can and will show that we are serious about Bitpanda, with customer safety as our top priority. […] Obtaining licenses can be difficult in itself, but we are absolutely committed to continuing on this journey – because it is the only right thing to do.”
The question of how to license and regulate crypto exchanges has been a hot topic since the FTX crash. Bank of England Deputy Governor Jon Cunliffe revealed this The BoE intends to create “regulatory sandbox” to explore ways to effectively regulate exchanges, and the US Senate has done just that opened the hearing consider how to effectively regulate crypto exchanges.
Bitpanda’s Eric Demuth originally provided comments in German to Cointelegraph’s Veronica Rinecker, who were previously published in an article written in German on the subject.