Bitpanda’s announcement that it has been granted a custody license for cryptocurrency by the German financial institution BaFin was posted on the company’s official blog.
This license allows the cryptocurrency exchange to legally market its services to persons who are not located in Germany after it has been acquired.
Bitpanda claimed that they were also the first european bitcoin exchange to attain this distinction.
Due to the collapse of FTX, people are more attentive to cryptocurrency exchanges which don’t have rules and operate outside of a country.
A large number of foreign exchangers are now working to obtain licenses in different countries so they can prove that they are trustworthy.
Bitpanda is now legal in Sweden. It joins the ranks of countries like Austria, Spain, Italy, the Czech Republic and the United Kingdom. This new license has allowed Bitpanda to be legally regulated in more countries.
Before Coinbase, Kapilendo and Tangany were able secure the license, there were already four bitcoin-related businesses.
Bitpanda claims it is the first European-based retail bitcoin platform to obtain the license, as its headquarters are in Austria. Because Austria is part of Europe, this is why it is claimed that Bitpanda is the first “European” retail bitcoin platform to acquire the license.
Since the collapse in FTX, the topic of how to license and govern cryptocurrency exchanges has been a major topic of public discussion. The question is, specifically, whether cryptocurrency exchanges should have licenses at all.
Jon Cunliffe is the Bank of England’s deputy governor. He stated that the BoE intends to create a “regulatory Sandbox” to help establish how to supervise exchanges and how to effectively oversee them. The Senate of the United States also started hearings to examine efficient ways to regulate cryptocurrency exchanges. The hearings are part of an ongoing investigation.