Exchange News- The regulator claimed to have discovered “organizational deficiencies” at the exchange.
- It showed inconsistencies in the way the company was run across all audited departments.
BaFin, Germany’s Federal Financial Supervisory Authority, has mandated that Coinbase’s German subsidiary get its house in order. BaFin, Germany’s financial regulator, has said that it has discovered irregularities in how Coinbase Germany operates. The company’s corporate structure was criticized for allegedly violating applicable regulations. Moreover, after conducting an audit, the regulator claimed to have discovered “organizational deficiencies” at the exchange’s Germany branch.
The crypto exchange is already the subject of many investigations in other countries, and this recent declaration from German officials just adds fuel to the fire. BaFin claimed to have discovered organizational flaws in the corporation, albeit it is unclear in what way.
Expanding Operations in the EU
It showed inconsistencies in the way the company was run across all audited departments. According to a statement released by the Federal Financial Supervisory Authority, the order was made on September 27, 2022.
The order read:
“An audit of the annual financial statements revealed organizational deficiencies at the institute. The regularity of the business organization was not given in all audited areas.”
The BaFin announcement comes as the cryptocurrency trading platform is expanding its operations across the European Union. Indeed, a senior executive from a German fintech firm had been recruited by the U.S.-based exchange. As part of its European development efforts, Coinbase announced on October 17 that it has recruited Daniel Seifert, chief operations officer of Solarisbank. Recently, the firm received approval from authorities in both Italy and the Netherlands.
A regulatory authorization for Coinbase is pending in France and Spain at this time. However, early this year, the cryptocurrency exchange said it will be eliminating thousands of jobs in the United States.
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Source: https://thenewscrypto.com/coinbase-germany-under-scrutiny-by-financial-regulator-bafin/