One of the largest digital currency exchange platforms, Coinbase, is facing issues in Germany. Germany-based Coinbase is now facing business violations as per the country’s regulations. BaFin believed that Coinbase was violating its business rules related to the crypto market. It advised Coinbase to adhere to certain regulations because it has crypto related markets in the nation.
BaFin warned Coinbase recently for not following the country’s business requirements. BaFin was established to promote financial stability and transparency in the country. It acts as the head of the financial services regulations in Germany. BaFin maintains the country’s economic stability through banks, credit institutions, insurance companies, and stock exchanges.
Recently, Brain Armstrong joined a live meeting with Bankless to discuss his new approach towards Coinbase. Brain stated that he was upset with the recent third quarter earnings report. He thought it was important to provide clarity about how Coinbase crypto assets are different from others. The new approach is to maintain transparency, risk management, and consumer protection.
“Coinbase is a publicly traded company in the United States, and we have built our business in a way that allows us to be transparent about our track record, balance sheet strength and effectively and prudently manage risk for our customers and ourselves,” Brain stated.
What Sets Coinbase Apart From Other Crypto Exchanges
- At Coinbase, there is no “run on the bank.”
- Holding a strong capital position of $5.6 billion (USD).
- Special team to maintain safety on the platform.
The company released a letter on November 3, 2022, stating, “In Q3, we launched institutional staking for Ethereum globally, and while adoption is still in its early days, we are optimistic about the long-term opportunity.”
Coinbase stated that it will improve and develop the conditions that will help the entity’s growth in 2023. It is determined to overcome the economic conditions that pulled the entity backward in the 2022 reports.
The company is attempting to expand its global market into European nations. Recently, it got permission from the Netherlands and Italy to start their crypto businesses. Brian Armstrong, recently attended the Singapore Fintech Festival (SFF) 2022 event. On this occasion, he stated that regulation can protect retail users of the crypto assets while enabling Web3 innovations.
Recently, Coinbase released its third quarter earnings, showing that its revenue fell to $576.4 million (USD), a decrease of 28% from its second quarter earnings. Its net loss was reduced to $544.6 million (USD).
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/10/germany-based-coinbase-is-having-issues-with-bafin/