All eyes are presently on the collapse of FTX within the crypto trade. That’s why right this moment’s information from Bitpanda is a crucial sign for the Austrian unicorn firm. Bitpanda has acquired a crypto license from Germany’s monetary regulator (BaFin).
Its German subsidiary is now formally allowed to course of cryptocurrencies for German clients below its Crypto Custody and Proprietary Buying and selling license. It doesn’t need to depend on passporting guidelines. Whereas there are a myriad of crypto licenses throughout Europe, BaFin’s license is sort of selective as there are solely 4 firms which can be listed as licensed crypto custody firms in BaFin’s database.
Coinbase is the opposite well-known firm within the database. It holds an identical license, however it’s a U.S.-based firm. Bitpanda says it’s the first European retail funding platform that meets these necessities.
Along with its German license, Bitpanda additionally holds licenses with the Austrian and French monetary regulators. As Bitpanda needs to develop its white-labeling business, these licenses are key benefits with regards to signing partnerships with different European fintech firms.
As an illustration, Lydia has partnered with Bitpanda in order that Lydia can supply crypto and stock trading for its clients. Lydia is especially standard in France with greater than 5.5 million clients.
N26 additionally just lately launched crypto trading in Austria. It is a first step because the German cellular financial institution needs to develop crypto buying and selling to different markets. I’m certain that the truth that Bitpanda utilized for licenses in Germany and France had an impression on these partnership discussions.
“At Bitpanda we set the very best requirements for ourselves and stay completely dedicated to doing issues proper, and doing the precise issues,” co-founder and CEO Eric Demuth mentioned in an announcement. “This precept is firmly embedded in our DNA as a totally regulated funding platform and, in my view, vital to the long-term success of our trade. The safety of our clients’ digital property, in addition to these of our White Label companions, is our high precedence.”
Along with France, Germany and Austria, Bitpanda additionally has acquired regulatory approvals in Czech Republic, Sweden, Italy, Spain, Sweden and the U.Ok. As Coindesk notes, there are plans to standardize crypto regulatory frameworks on the EU stage with the Markets in Crypto Property (MiCA) regulation.
So there will probably be extra regulation bulletins sooner or later. Whereas Bitpanda doesn’t title FTX instantly, it’s clear that the corporate needs to seem as a accountable firm for European buyers.
In line with FTX’s support portal, FTX operated in Europe by way of Ok-DNA Monetary Companies Ltd., an funding agency regulated by the Cyprus Securities and Trade Fee and passported to the European Financial Space.
“We wish to give our clients a secure, safe and easy solution to make investments. Meaning being regulated and it means a strict separation of buyer and firm property, which is unfortunately not the case in all places nowadays,” Demuth mentioned.
