Customers in the European nation can now avail of custody and proprietary trading services from the Austrian cryptocurrency exchange.
Bitpanda, an Austrian exchange, announced on Tuesday that its local branch had acquired a cryptocurrency license in Germany.
Bitpanda Asset Management GmbH claimed in a news release that it may now independently offer crypto custody as well as proprietary trading for crypto assets for German residents thanks to the license from the German Federal Financial Supervisory Authority (BaFin).
Additionally, Bitpanda will be able to keep an order book and directly market services for cryptocurrency assets, allowing them to offer a secure and regulated environment for German consumers to invest in a variety of cryptocurrencies, according to the firm.
Global regulators are keeping a careful eye on the cryptocurrency market as it recovers from the collapse of the largest cryptocurrency exchange, FTX. The European Union, of which Germany is a part, just completed its thorough framework for regulating cryptocurrency issuers and service providers seeking to operate in any of the 27 member nations of the trade union.
The European Union’s Markets in Crypto Assets (MiCA) should be the global standard for crypto regulation, according to Stefan Berger, the German legislator in charge of guiding the draft legislation over the European Parliament after FTX declared bankruptcy in the United States.
MiCA won’t go into force, however, until at least 2024, and EU nations like Germany and France are still issuing local regulatory permits, despite this.
Regulatory approval for Bitpanda, which last year became Austria’s first fintech unicorn, has been granted in several European nations, including Spain, France, Austria, Italy, the Czech Republic, the United Kingdom, and Sweden.
Bitpanda co-founder and CEO Eric Demuth said in a statement to the press that the German license has been in the works for several months.
Demuth, who appeared to be referring to allegations that FTX misappropriated customer funds for engaging in dangerous trades, said: “That implies being regulated and it means a strong separation of consumer and corporate assets, which is sadly not the case everywhere these days.”