Boerse Stuttgart Digital subsidiary receives final approval for crypto custody

Boerse Stuttgart Digital, the digital asset brand of the Boerse Stuttgart exchange group, announced March 30 that its blocknox service has received final licensing from the German Federal Financial Supervisory Authority (BaFin) to operate as a crypto custodian. Boerse Stuttgart Group now offers fully regulated brokerage, trading, and custody of digital assets, it said. Its [...]

The post Boerse Stuttgart Digital subsidiary receives final approval for crypto custody appeared first on Crypto Breaking News.

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Bitvavos German Market Exit: Is There a Conflict with BaFin?

Here, we dig into the details of Bitvavo's German market exit and its potential impact on the crypto landscape.

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Germany Joins Anti-Binance Sentiment, BaFin Rejects License Application

After the United States declared open war on cryptocurrency exchange Binance, Europe is also proving to be an increasingly unfriendly territory for the digital asset market giant. Owned by Changpeng Zhao (CZ), the platform had hoped that Germany would become one of its new hubs on the Old Continent. However, recent reports suggest that the local financial market regulator, BaFin has not looked favorably on Binance's application.

BaFin Rejects Binance's Bid in Germany

According to information published by a German financial news website, Finance Forward today (Thursday), insiders claim that BaFin is unwilling to grant Binance a crypto custody license. Binance's press spokesperson has not confirmed these reports but commented to CoinDesk that the exchange is continuously working to meet all the requirements set by BaFin. He acknowledged that it is a complicated and lengthy process, but the platform is still hopeful for a positive conclusion.

If Binance fails to obtain a license in Germany, its business development in Europe may be in question. This is especially true given that the exchange has significantly limited its local presence due to regulatory changes.

Finance Magnates reported two weeks ago that Binance is exiting Cyprus and the Netherlands. Since then, the platform has come under scrutiny from the French prosecutor's office for operating an 'illegal' exchange; it withdrew its license in the United Kingdom; and it was forced to leave Belgium.

The challenges in Europe are further exacerbated by the fact that Paysafe Solution, Binance's euro banking partner, is suspending support for further payments from the end of September 2023.

?? Binance #Crypto Custody License Application Denied by ???? German Regulator BaFin ????Several blows to #Binance in ???? EU ??#CryptoNews #Cryptocurency #BNBhttps://t.co/OnebGzBdTA

Binance Shifts Focus to Asia and the Middle East

Although Binance does not claim to be withdrawing from Europe, but rather adjusting its local strategy to comply with new regional cryptocurrency regulations (MiCA), it is faring considerably better on other fronts.

A week ago, Binance entered the Central Asian market by launching local services in Kazakhstan. The new platform will allow users to trade and store digital assets, make fiat deposits and withdrawals, as well as avail conversion services.

A representative from the exchange also hinted earlier this week that faced with regulatory pressure in the US and the EU, the Middle East might become Binance's primary target. These words came from Alex Chehade, the General Manager of Binance Dubai. According to Chehade, the United Arab Emirates (UAE) have favorable and transparent regulations regarding digital assets.

At a time when the EU is implementing MiCA and the United States is clashing with crypto exchanges, the giants of 'traditional finance' are seeking their place at the growing cryptocurrency table. Over the past two weeks, more companies have joined the collection of applications for the establishment of a spot Bitcoin ETF, which was initiated by BlackRock. ARK Invest, BitWise, and Invesco also want to offer a similar instrument.

Although US regulators have rejected such applications in the past, Wall Street giants are hoping that the current 'negative PR' around crypto exchanges will increase the chance of launching fully regulated instruments.

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German regulator reportedly rejects Binance’s crypto custody license request

Binance’s regulatory trouble continues to mount as the exchange faces pushback in Europe and the United States.

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German regulator raised concerns about Binance CEO prior to license application withdrawal: Report

BaFin reportedly advised Binance that CEO Changpeng Zhao wouldn’t pass a “fit and proper” test as part of the financial watchdog’s licensing regime.

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Binance withdraws crypto license application in Germany

The crypto exchange’s move to withdraw its license in Germany comes amid reports that the exchange faced rejection from regulators.

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BaFin Declines to Classify NFTs as Securities, Recommends Case-by-Case Approach

The Federal Financial Supervisory Authority of Germany (BaFin) has stated that it is not yet prepared to classify non-fungible tokens (NFTs) as securities. While NFTs may be considered investments in certain cases, BaFin suggests that classification should be approached on a case-by-case basis. The lack of immediate exchangeability and standardization makes it unlikely that NFTs will be classified as crypto assets. However, if an NFT contains documentation of exploitation rights or ownership, it could be considered an investment. BaFin does not expect NFTs to comply with the licensing requirements of the Payment Services Supervision Act or fall under its Anti-Money Laundering supervision, except for NFTs that are considered "crypto assets." (Read More)

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German regulator BaFin suggests a ‘case-by-case’ approach for NFTs

Given the difficulties with classification, BaFin highlights the freedom of nonfungible tokens from licensing demands.

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BaFin Raises Alarm on Trojan ‘Godfather’ Affecting Banking and Crypto Apps

<p class="MsoNormal">Germany’s Federal Financial Supervisory Authority (BaFin) has urged consumers to beware of ‘Godfather’, a trojan virus that attacks Android-based banking and cryptocurrency apps. The regulatory authority announced on Monday that <a href="https://www.financemagnates.com/tag/virus/" target="_blank" rel="follow">the trojan virus</a> currently “records user input from banking and crypto apps.”</p><p class="MsoNormal">BaFin in a statement noted that the malware has attacked about 400 banking and crypto apps from around the world including Germany.</p><p class="MsoNormal">“How exactly the software gets onto the infected end devices of consumers is unclear. Godfather is known to display fake websites of regular banking and crypto apps. When consumers log in via these websites, their login details are transmitted to the cyber criminals,” Bafin explained in the statement.</p><p class="MsoNormal">Furthermore, the German regulator explained that the malware sends push notifications to unsuspecting users in order to get the codes for the two-factor authentication security system. “With this data, the cyber criminals may be able to access consumers' accounts and wallets,” BaFin added.</p><p>Watch the FMLS22 session on how security in the fintech industry is being disrupted. </p><p class="MsoNormal">United States and Turkey Most Affected by ‘Godfather’ Trojan, Says Group-IB</p><p class="MsoNormal">Meanwhile, Group-IB, a cybersecurity services provider, <a href="https://www.financemagnates.com/cryptocurrency/android-trojan-targets-400-crypto-and-finance-apps/" target="_blank" rel="follow">recently warned users</a> to exercise extreme caution when using these apps. </p><p class="MsoNormal">According to the cybersecurity firm, the United States, Turkey and Spain account for the highest number of trojan or ‘Godfather’ malware activities. Canada, France, Germany and the UK are also hotbeds for the trojan, Group-IB said.</p><p class="MsoNormal">Additionally, the cybersecurity firm noted the ‘Godfather’ malware attacked users in 16 countries last year. These attacks affected 215 banking apps, 94 crypto wallets and 110 cryptocurrency exchange platforms.</p><p class="MsoNormal">Moreover, Group-IB in its report said the ‘Godfather’ malware code has an interesting functionality that prevents it from attacking users located in Russian-speaking and former Soviet Union countries. This suggests that the creators of the virus are from Russia or one of the former Soviet states, the cybersecurity firm said.</p><p class="MsoNormal">“The emergence of Godfather underscores the ability of threat actors to edit and update their tools to maintain their effectiveness in spite of efforts by malware detection and prevention providers to update their products,” Artem Grischenko, a Junior Malware Analyst at Group-IB, noted. </p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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BaFin President Seeks Global Crypto Regulation

<p>Germany, the largest economy in Europe, is seeking global crypto regulation amid market turmoils and fraud. Mark Branson, the President of the country's financial market regulator, <a href="https://www.financemagnates.com/cryptocurrency/regulation/bafin-clarifies-crypto-investments-are-not-protected-by-deposit-insurance/" target="_blank" rel="follow">BaFin</a>, recently voiced his opinion on the necessity of crypto regulations in Germany and globally.</p><p>BaFin President Casts Doubt on Self Crypto Regulation</p><p>As reported by Reuters, Branson told journalists on Tuesday evening that a self-regulatory approach to the cryptocurrency industry would not work. "We've seen the self-regulated world. It will not work," he said.</p><p>"Now is the time for serious cryptocurrency <a href="https://www.financemagnates.com/terms/r/regulation/" target="_blank" id="341d154e-1396-4d12-a357-4837e79c4146_2" class="terms__secondary-term" rel="follow">regulation</a>," he added. "The most important point is that it doesn't need just a European solution. It needs a worldwide solution."</p><p>BaFin oversees German crypto companies and requires licenses for banks to deal in cryptocurrencies. However, it still needs a crypto regulatory framework. Meanwhile, the European Union has been working on new Markets in Crypto Assets Regulation (MiCA) that would broaden the existing laws.</p><p>Check out the recent London Summit interview with the UK's MP Lisa Cameron on the topic "Crypto Hub in the Making." </p><p>BaFin Takes Aim at Crypto Fraudsters in Latest Regulatory Push</p><p>Branson's comments came hours after the US prosecutors brought criminal charges against crypto exchange <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX's</a> founder and former CEO, Sam Bankman-Fried. He has been accused of wire, commodities, securities fraud, and <a href="https://www.financemagnates.com/terms/m/money-laundering/" target="_blank" id="f30ffb65-351e-44d6-9dae-0714f08b59b2_1" class="terms__main-term">money laundering</a>. Two top US regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission, also <a href="https://www.financemagnates.com/cryptocurrency/us-cftc-charges-bankman-fried-ftxcom-and-alameda-with-fraud/" target="_blank" rel="follow">charged the former crypto billionaire with fraud.</a></p><p>The Bahamas law enforcement <a href="https://www.financemagnates.com/cryptocurrency/sam-bankman-fried-arrested-in-the-bahamas-amid-us-criminal-charges/" target="_blank" rel="follow">arrested Bankman-Fried</a> on Monday evening (local time) at a request from the US prosecutors after filing criminal charges. He is now expected to be extradited to the United States.</p><p>Additionally, crypto fraud is rampant, which can be seen from the series of law enforcement actions against scammers, Ponzi schemes, and whatnot. Most recently, the prosecutors in the US brought a criminal charge against the promoters of <a href="https://www.financemagnates.com/cryptocurrency/operators-of-crypto-ponzi-schemes-forcount-and-icomtech-charged-for-fraud/" target="_blank" rel="follow">two crypto Ponzi schemes</a>.</p><p>Branson was also known to be skeptical of the crypto industry as he said earlier that "not all crypto business models are serious." He added that "waves of innovation, as we know, also bring with them freeloaders and crooks."</p> This article was written by Arnab Shome at www.financemagnates.com.

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Bitpanda is Germany's first "European retail" crypto platform.

Bitpanda has a crypto custody license from BaFin. Austrian crypto exchange can legally market to Germans. Bitpanda is regulated in Austria, the UK, Italy, the Czech Republic, Spain, Sweden, and France. (Read More)

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Bitpanda Obtains Crypto License in Germany

<p> Bitpanda, a cryptocurrency exchange <a href="https://www.financemagnates.com/terms/s/startup/" target="_blank" id="faa35d08-52b2-4b16-9fca-cc970781391c_1" class="terms__main-term">startup</a> from Austria, has registered in Germany as a crypto custody service and proprietary trading provider. Through its local branch, Bitpanda Asset Management GmbH, the platform can now independently offer its products to German traders and investors.</p><p class="MsoNormal">According to the press release, <a href="https://www.financemagnates.com/tag/bitpanda/">Bitpanda</a> had been applying for German authorization for months. After successfully finishing the licensing procedure, the cryptocurrency startup is currently licensed in the Czech Republic, Sweden, the UK, <a href="https://www.financemagnates.com/cryptocurrency/regulation/bitpanda-gains-crypto-license-in-spain/">Spain</a>, Italy and France.</p><p class="MsoNormal">Multiple licenses in different jurisdictions will better separate customers' funds from the exchange's assets, providing them with greater security, the CEO and Co-Founder of Bitpanda, Eric Bemuth, said in a statement. </p><p class="MsoNormal">Bitpanda is the first fintech unicorn from Austria. The company raised $170 million in March 2021, which pushed its valuation to $1.2 billion. The Series B funding round was led by the venture capital firm, Valar Ventures, founded by Andrew McCormack, Peter Thiel and James Fitzgerald. It was one of the largest amounts of capital raised in the Old Continent.</p><p class="MsoNormal">"Bitpanda will be able to maintain an order book and directly market services for crypto assets, enabling them to provide a secure and regulated environment for German customers to invest in a wide range of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a>," the company said in a press release quoted by CoinDesk.</p><p class="MsoNormal">Crypto Regulations in Europe Getting Closer?</p><p class="MsoNormal">Following the <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/">FTX cryptocurrency exchange's collapse</a>, regulators worldwide are taking a closer look at the digital asset industry. Many experts believe this will lead to substantial and restrictive regulation of the entire industry. </p><p class="MsoNormal">The European Union, where Germany is a major member, is getting closer to regulating the niche. The entity has finalized a framework for supervising crypto service providers and issuers who would like to operate in any of the 27 member states.</p><p class="MsoNormal">However, the regulations at the European level will not come into force until 2024. Therefore, individual countries, including Germany or <a href="https://www.financemagnates.com/tag/france/">France</a>, are issuing their own regulatory licenses. However, the French are ready to discard the local regulatory system for cryptocurrencies when the European Markets in Crypto Assets (MiCA) comes into force.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Coinbase Ordered by BaFin to Ensure Proper Business Reorganization

German market regulator has instructed Coinbase to ensure its proper business reorganization (Read More)

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BaFin Clarifies Crypto Investments Are Not Protected by Deposit Insurance

<p>The German financial market supervisor, the Federal Financial Supervisory Authority (<a href="https://www.financemagnates.com/cryptocurrency/bafin-warns-investors-of-crypto-trading-advices-on-social-media/" target="_blank">BaFin</a>) clarified on Monday that deposit insurance protection in the mainstream financial industry does not cover losses with cryptocurrencies.</p><p>“BaFin now points out that crypto-assets do not fall under the protection of deposit insurance and, as a rule, the protection of investor compensation does not apply either,” the latest warning stated (translated from German).</p><p>In addition, the agency pointed out that existing insolvency laws in the country and the collapsed crypto company’s agreement with customers will determine the recovery of customers.</p><p>“The position of the customer is based on insolvency law, and, therefore, depends on whether there is a right of segregation after the design and implementation of the contractual relationship between the custodian and the customer,” the agency added.</p><p>Under the European Union law, customer deposits in the banks are protected by up to €100,000, which is a safety net that is not available to crypto companies.</p><p>The latest clarification came as an amendment to the existing warning of BaFin against crypto investments, which the regulator issued last February. Then, the German market supervisor termed crypto investments very risky.</p><p>Crypto Companies Going Under</p><p>The amendment and clarification came when the cryptocurrency industry is witnessing several abrupt <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_1" class="terms__main-term">bankruptcy</a> filings. Celsius, Voyager Digital and a few others became insolvent. However, the normal recovery process for the customers is time-consuming: <a href="https://www.financemagnates.com/terms/m/mt-gox/" target="_blank" id="ae7ab25e-da89-4932-a03d-5d5cfff9973b_1" class="terms__secondary-term">Mt. Gox</a> creditors still did not receive their claims.</p><p>Meanwhile, several crypto companies made claims of being protected by the mainstream deposit protection schemes prompting regulators to debunk the misleading statements.</p><p>The US <a href="https://www.financemagnates.com/tag/fdic/" target="_blank">FDIC </a>first warned Voyager Digital for falsely claiming customers to be protected by the US government and then send notices to a few other platforms, including the <a href="https://www.financemagnates.com/cryptocurrency/regulation/ftx-us-among-platforms-warned-by-us-fdic-for-misleading-statements/" target="_blank">US arm of FTX</a>, for similar statements.</p> This article was written by Arnab Shome at www.financemagnates.com.

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DLT Finance Receives BaFin Licenses to Launch Trading Platform for Digital Assets

The new platform is now offering a variety of digital asset services to institutional clients after receiving nine new trading licenses. (Read More)

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BaFin to Investigate blockchains.de

The German financial regulator, BaFin, announced a formal investigation against blockchains.de, a trading platform on Wednesday. According to the watchdog, the firm’s operators do not hold authoriz...

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German banking giant Commerzbank applies for crypto license

A spokesperson for Commerzbank confirmed to local media that it applied for the license with BaFin earlier this year in a first for a major bank in Germany.

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BaFin Warns Investors of Crypto Trading Advices on Social Media

The Federal Financial Supervisory Authority in Germany (BaFin) issued a warning on crypto trading advice on social media. Although there was no direct reference to social media channels, Telegram i...

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BaFin Launches Investigation against BitcoinWelt

Germany's financial regulator says BitcoinWelt is not authorized nor supervised by the local authorities.

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Kraken To Re-Enter The European Market By Applying For A New License

Kraken, following Brexit, seeks another license to re-surface in the European market with top choices, including Luxembourg, Malta, and Ireland. Kraken is the second top crypto exchange in the United States by its trading volume. It is presently seeking a new license to re-enter the European market towards the end of 2021. Kraken has entered into a dialogue with regulators in various European countries to this effect. Related Reading | Blockchain Startup In Pakistan Dubbed Bazaar Secures $30 Million In Funds The exchange, according to Kraken’s spokesperson, initially operates in Europe. But its European clients can currently access it only through an entity registered with UK’s FCA (Financial Conduct Authority). Kraken Claims Its Compliance To Rules Kraken claims to have been complying with the applicable requirements of 5AMLD – EU’s Fifth Anti-Money Laundering Directive. The exit of Great Britain from the E.U. signifies that Kraken needs to source for re-entering the continent. Thus exchange’s spokesperson said earlier that; “Kraken is an exchange that is regulatory compliant and exists in almost 190 jurisdictions across the globe. Though, it maintains constructive and proactive dialogues with crypto regulators in the fast-growing European regulatory landscape.’ He added that the firm plans always to be and remain regulatory compliant.” The Kraken founder and CEO Jesse Powell stated that the company is working to obtain a European country license. He made this known during an interview with Handelsblatt, a German Business publication. Powell added that the Kraken exchange seeks to re-enter Europe by the end of 202. It will go with the Republic of Ireland, Malta, and Luxembourg, among possible countries, to award such a license. However, they are yet to fix an official date as the talk still goes on. In the past June, Coinbase received a trading and crypto custody license for its new German division. It’s the biggest crypto exchange in the United States and exchange’s main competitor with BaFin license-the German Federal Financial Supervisory Authority. Coinbase also offers services to users across other European Countries. Powell emphasized that the exchange is resistant to toll the same path as Coinbase. He added that the exchange also talked with BaFin but saw Germany’s climate condition to be harsh and restrictive. As a result, they found it too expensive to operate there with these conditions. Kraken’s Conventional Approach To IPO The crypto exchange was planning to raise fresh capital to raise the market valuation of San Francisco-based Company above $10 billion. This was revealed by a report earlier this year, which raised speculations that the exchange will finally go public. This was similar to the action Coinbase took in April via direct listing. Related Reading | PayPal To Facilitate UK Customers With Cryptocurrency Trading Feature On the listing, Powell confirmed that he plans to do something similar. However, he later accepted possible adjustments on the initial plans as he takes a closer look at a more traditional initial public offering. Featured image from Kraken Medium

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