German BaFin Says Coinbase’s German Division is Violating the Banking Law
The German Federal Financial Supervisory Authority (BaFin) has issued an order to the Coinbase division to “ensure the proper organization of the business.”
The regulator has pointed to a violation of the Banking Law, noting two sections in the order.
They are about risk management, sufficient provision of internal capital, the creation of a clear internal structure with the division of competencies, the definition of a remuneration system and other principles of sustainable development.
According to a representative of the US exchange:
“Coinbase is committed to complying with all legal requirements under this regulation regime. We are fully collaborating in an effort to take into account the findings of the annual audit report.”
He has added the company has developed a plan to address the shortcomings, taking into account all the comments made by BaFin.
