BaFin, the Federal Financial Supervisory Authority of Germany, ordered Coinbase to comply with regulations and properly conduct business in the banking and financial industry.
On October 27th, BaFin issued the order to Coinbase’s arm in Germany to comply with the banking laws in Germany.
In a recent statement, BaFin emphasized the importance of “proper business organization”. They suggested that Coinbase’s arm in Germany should follow the rules and regulations.
BaFin noted that Coinbase should have proper arrangements for managing the local branch by maintaining appropriate risk and accuracy levels. Moreover, BaFin also ordered Coinbase to provide certificates of audits regarding various financial reports.
This order came as a result of a recent audit of financial statements of Coinbase. That audit saw the need for more regulation throughout various operations in Coinbase’s arm in Germany.
Representatives of the exchange addressed the recent order. They said that the organization is continually working in full accordance with the laws and regulations of the banking industry in Germany. Moreover, they stCoinbase’s arm in Germany may continue its full cooperation with BaFin. Apparently, Coinbase has already started taking measures regarding the issue.
To give a little more context, BaFin provided Coinbase with the license for operation in the country back in July of 2021. Ever since that, the importance of regulations regarding crypto-related activities of companies in Germany has increased.