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The Federal Financial Supervisory Authority (BaFin) has ordered Coinbase's German arm to ensure "proper business organization."
According to a press release, the German financial regulator has found "organizational deficiencies" in COINBASE Germany GmbH. BaFin particularly referenced Section 25a (1) of the Act, which includes a set of requirements for businesses to have adequate risk management policy and transparent remuneration systems for management.
However, BaFin declined to provide further details on the deficiencies, which were identified as part of a review of Coinbase Germany's annual accounts.
BaFin granted Coinbase with permission to provide cryptocurrency custody services and trading in June 2021. Thus, Coinbase became the first cryptocurrency exchange to obtain such permission in Germany.
