These licenses authorize Crypto Finance to trade digital assets, facilitate settlements, and provide crypto asset storage services in Germany. With regulatory approvals in place, Crypto Finance can now provide legal services to institutional clients and legal entities.
“Crypto Finance has received a license from BaFin, which is recognized as the strictest supervisory authority in Germany. Our services meet BaFin’s rigorous standards, underscoring our commitment to transparency and security. We are determined to establish a reliable cryptocurrency ecosystem,” stated Stijn Vander Straeten, the CEO of Crypto Finance Group.
Crypto Finance has obtained approval from the German regulator at a time when Deutsche Börse is planning to launch its own DBDX exchange targeted at institutional investors. The launch is anticipated to occur later this year. By securing BaFin licenses, Crypto Finance believes that it has brought its operations in line with the EU Crypto Assets Regulation, known as MiCA.
Additionally, Crypto Finance is subject to regulation by the Swiss Financial Market Supervisory Authority (FINMA). In 2021, Deutsche Börse acquired a majority stake in Swiss Crypto Finance Group, a service provider that was already promoting products on the SIX exchange in Switzerland, including the launch of the first-ever cryptocurrency investment fund.
Last year, BaFin rejected a licensing application submitted by Binance, the world’s largest cryptocurrency exchange, due to potential non-compliance with regulatory requirements. Shortly after, BaFin’s Chief Strategy Officer, Rupert Schaefer, likened unregulated cryptocurrency exchanges to unidentified flying objects.