Bitpanda, an Austria-based cryptocurrency exchange, has bagged a crypto trading and custody license from a financial regulator in Germany.
With this license from Germany’s Federal Financial Supervisory Authority, known as BaFin, the company’s local unit Bitpanda Asset Management GmbH can now offer custody and proprietary trading services to customers in the European country.
As per a published statement “Additionally, Bitpanda will be able to maintain an order book and directly market services for crypto assets, enabling them to provide a secure and regulated environment for German customers to invest in a wide range of cryptocurrencies.”
Since the implosion and bankruptcy filing of Bahamian cryptocurrency exchange, FTX, several regulators have become more attentive toward designing a robust and effective regulatory framework for the crypto ecosystem in their region.
Before the German license, Bitpanda had already secured several licenses across and within Europe. Some of the regions where the crypto exchange holds a license are France, Italy, Spain, the United Kingdom, the Czech Republic, and Sweden.
European Regulators Anticipate MiCA Framework
Bitpanda believes that wielding multiple licenses from several jurisdictions will help the exchange detach customers’ funds from the company’s assets, unlike now-bankrupt FTX which mishandled customers’ deposits.
According to Chief Executive Officer (CEO) and Co-Founder of Bitpanda, Eric Demuth, “That means being regulated and it means a strict separation of customer and company assets, which is sadly not the case everywhere these days,”
Eventually, this will provide the exchange with better security in terms of users’ deposits. Notably, the crypto trading and custody license has been under processing for a couple of months but only finally got approved after the liquidity crunch faced by FTX.
Germany is also a member state of the European Union which has earnestly been working at launching the Markets in Crypto Assets (MiCA), a global regulatory standard for cryptocurrencies.
The EU’s MiCA has finally received Parliament’s vote of support bringing it to its last hurdles. After the FTX collapse, Europe regulators recognized an urgent need for the regulatory framework saying that MiCA could mitigate such FTX implosion recurrence in the future.
Last month, Bitpanda collaborated with German neobank N26 to introduce crypto trading tools.
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