Bitpanda Obtains German Crypto License as Crypto Platforms Want to Prove They’re Legit • TechCrunch

All eyes are currently on FTX collapse in the crypto industry. That’s why today’s news from Bitpanda is an important signal for the Austrian unicorn company. Bitpanda received a crypto license from the German financial regulator (BaFin).

Its German subsidiary is now officially authorized to process cryptocurrencies for German customers under its Crypto Custody and Proprietary Trading license. He doesn’t have to rely on passport rules. Although there are a myriad of crypto licenses across Europe, BaFin’s licensing is quite selective as there are only four companies listed as licensed crypto custody companies in The BaFin database.

Coinbase is the other well-known database company. It holds a similar license, but it is a US-based company. Bitpanda claims that it is the first European retail investment platform that meets these requirements.

In addition to its German license, Bitpanda also holds licenses with Austrian and French financial regulators. As Bitpanda wants to develop its white label companythese licenses are major assets for signing partnerships with other European fintechs.

For example, Lydia has partnered with Bitpanda so that Lydia can offer crypto and stock trading for its customers. Lydia is particularly popular in France with over 5.5 million customers.

N26 was also recently launched crypto trading in austria (as you can see in the illustration at the top of this article). This is a first step as the German mobile bank wants to expand crypto trading to other markets. I’m sure the fact that Bitpanda applied for licenses in Germany and France impacted those partnership discussions.

“At Bitpanda, we set the highest standards for ourselves and remain absolutely committed to doing things right and doing the right things,” co-founder and CEO Eric Demuth said in a statement. “This principle is firmly embedded in our DNA as a fully regulated investment platform and, in my view, essential to the long-term success of our industry. The security of our customers’ digital assets, as well as those of our White Label partners, is our top priority.

Besides France, Germany, and Austria, Bitpanda has also received regulatory approvals in the Czech Republic, Sweden, Italy, Spain, Sweden, and the United Kingdom. As Coindesk notes, there are plans to standardize crypto regulatory frameworks at EU level with the Markets in Crypto Assets (MiCA) regulation.

So there will be more regulatory announcements in the future. Although Bitpanda does not name FTX directly, it is clear that the company wants to appear as a responsible company for European investors.

According FTX Support PortalFTX operated in Europe through K-DNA Financial Services Ltd., an investment firm regulated by the Cyprus Securities and Exchange Commission and holding a European Economic Area passport.

“We want to offer our clients a safe, secure and simple way to invest. It means being regulated and it means strict separation of client and company assets, which unfortunately is not the case everywhere these days,” Demuth said.

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