The news that Bitpanda has secured a cryptocurrency custody license from the German financial organization known as BaFin was published in a post on the company’s official blog, where the announcement was made.
Following the acquisition of this license, the cryptocurrency exchange that maintains its headquarters in Austria is now legally authorized to market its services to individuals who are located in Germany.
In addition to this, Bitpanda said that they were the first retail bitcoin exchange to be founded in Europe to achieve this particular distinction.
As a direct consequence of the collapse of the FTX cryptocurrency exchange, people are paying more attention to cryptocurrency exchanges that do not have any rules and operate outside of a country’s jurisdiction.
Because of this, a significant number of exchangers are working toward obtaining licenses in various nations so that they can provide evidence that they are a trustworthy business.
Bitpanda is now legally regulated in the country of Sweden, joining the ranks of other countries like as Austria, the United Kingdom, Italy, the Czech Republic, and Spain. The number of nations in which Bitpanda is legally regulated has increased with the acquisition of this new license.
In the bitcoin sector, there were already four other businesses that have the license before Coinbase, Kapilendo, Tangany, and Upvest were able to secure it for themselves.
Bitpanda claims that it is the first “European” retail bitcoin platform to acquire the license since its headquarters are located in Austria. This is because Austria is considered to be part of Europe.
Since the collapse of FTX, the subject of how to give licenses to and otherwise govern cryptocurrency exchanges has been at the forefront of public conversation. Specifically, the question is whether or not cryptocurrency exchanges should be licensed at all.
According to Jon Cunliffe, who is the deputy governor of the Bank of England, the BoE plans to set up a “regulatory sandbox” in order to establish how to successfully supervise exchanges in order to discover how to properly oversee exchanges. In addition, the Senate of the United States has started conducting hearings to study efficient methods to regulate cryptocurrency exchanges. These hearings are being held as part of an ongoing investigation.