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Source: Сointеlеgrаph

In an official blog post, Bitpanda announced that it has received a license to hold cryptocurrencies from the German financial authority BaFin.

With this license, the Austrian-based cryptocurrency exchange can now legally sell its services to residents of Germany. Bitpanda also claimed to be the first retail crypto exchange outside of Europe to achieve this distinction.

The collapse of the FTX cryptocurrency exchange has led to increased scrutiny of unregulated crypto exchanges that operate outside of the country’s jurisdiction. For this reason, many exchanges seek to obtain licenses in several countries in order to prove that they are legal. This latest license adds to the list of countries where Bitpanda is officially regulated, including Austria, the UK, Italy, the Czech Republic, Spain, Sweden, and France.

Previously, four other crypto-related firms were licensed: Coinbase, Kapilendo, Tangany, and Upvest. The last three cater to institutional investors. While the American Coinbase is a retail investment platform. Bitpanda claims to be the first “European” retail crypto platform to be licensed as it is based in Austria.

Bitpanda CEO Eric Demuth told that this license “was the result of many months of hard work from the entire Bitpanda team.” He stated that the company can now prove that it is an honest and reliable custodian of crypto assets for German clients:

“We can and will prove we are serious when it comes to Bitpanda making customer security our top priority. […] Acquiring licenses can be difficult in and of itself, but we are determined to continue on this path because it is the only way out.”

The question of how to license and regulate cryptocurrency exchanges has been a hot topic since the FTX crash. Bank of England Deputy Governor John Cunliffe has revealed that the Bank of England intends to create a “regulatory sandbox” to explore ways to effectively regulate exchanges, and the US Senate has begun hearings to consider how to effectively regulate cryptocurrency exchanges.

Eric Demuth of Bitpanda originally provided comments in German to Veronica Rinecker of , which were previously published in a German article on the topic.

Source: Сointеlеgrаph

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