By Eurasia Business News – July 3, 2021

Coinbase has secured a license to store cryptocurrency in Germany. This will allow the platform to continue serving customers in the country. Coinbase shares already rise 5.75 % to $ 240.72.

Coinbase, the largest cryptocurrency exchange platform in the United States, has been awarded a license from the German Federal Financial Supervisory Authority (BaFin) to provide cryptocurrency storing and trading service. This authorization will allow Coinbase to continue serving customers in the country. The company released the information on June 28. Following this news the value of the shares of the company increased by 5.75 % and reached $ 240.72 on July 3.

Coinbase shares have been listed on the NASDAQ stock exchange since April 14, 2021. Immediately after the opening of trading, the share price reached $ 381 with a set reference price of $ 250. Within a few hours, the shares rose in price by 12.5% ​​to $ 429.5, but then quotations fell to a local minimum of $ 315. The closing price on the first day of trading was $ 328.28.

“Being awarded the licence is the culmination of many months of hard work from the Coinbase team, in close collaboration with the BaFin. We look forward to bringing a best-in-class crypto product offering coupled with a secure, localised experience to our German customers.” — said Marcus Hughes, Coinbase’s Managing Director for Europe

At the end of 2019, the German Parliament ordered all organizations that store cryptocurrency to obtain a license to operate under the BaFin regulation. Coinbase was the first crypto exchange to receive this license.

Germany is now the second ranking country, after the US, in terms of the number of Bitcoin nodes being run.

In addition, it was announced on June 24 that Coinbase received permission to work in Japan. A subsidiary of the crypto exchange received a corresponding license from the Japanese Financial Services Agency (FSA), which controls financial activities in the country. Coinbase has been trying for years to enter the Japanese market.

Bitcoin price reached $ 64,000 for the first time in April as Coinbase Global Inc., the famous cryptocurrency exchange, was listed on the the Nasdaq.

These storing and trading licenses for Coinbase in Germany and Japan are good news for the cryptocurrency industry, after the sharp fall of Bitcoin price to $ 30,000 in May 2021. The record high was $ 64,829 in mid-April. Now the Bitcoin is worth $ 34,700 as of July 3, 9:55 PM BST. In spite of this drop Bitcoin still gathers support amid investors and business circles, since the famous cryptocurrency is seen as one of the best hedges against inflation and the consequences of pandemics. This bitcoin rush would be favoured in particular by the status of the cryptocurrency against the depreciation of “classic” currencies, by the interest aroused among an increasingly wide range of institutional investors and the growth of the blockchain industry.

Gold, often considered as the best hedge against inflation, has been rising over the years. Its price has grown by 27% from July 2019 until July 2021.

These storing and trading licenses for Coinbase in Germany and Japan are good news for the cryptocurrency industry, after the sharp fall of Bitcoin price to $ 30,000 in May 2021. The record high was $ 64,829 in mid-April. Now the Bitcoin is worth $ 34,700 as of July 3, 9:55 PM BST. In spite of this drop Bitcoin still gathers support amid investors and business circles, since the famous cryptocurrency is seen as one of the best hedges against inflation and the consequences of pandemics. This bitcoin rush would be favoured in particular by the status of the cryptocurrency against the depreciation of “classic” currencies, by the interest aroused among an increasingly wide range of institutional investors and the growth of the blockchain industry.

Gold, often considered as the best hedge against inflation, has been rising over the years. Its price has grown by 27% from July 2019 until July 2021.

Large investors, banks from Goldman Sachs to Morgan Stanley, investment fund like SkyBridge Capital, fintech like Paypal or Square Inc. and industrial tech companies such as Tesla Inc have invested significant funds in Bitcoin.

In early June 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender.

On March 24, the tech billionaire Elon Musk announced on Twitter that it was now possible to buy a Tesla car with Bitcoin and that Bitcoin paid to Tesla will be retained as crypto and not converted to fiat currency. However, on May 12,  Musk said that Tesla had suspended vehicle purchases using bitcoin, due to  environmental concerns over the so-called “mining” process of the cryptocurrency through thousands of high-powered computers.

Another pressure on the expansion of the cryptomarket is the policy of Chinese authorities. However, crypto mining and trading activities can leave China to be carried out in more friendly jurisdictions. The main force of the cryptocurrency market is the confidence on the long-run of institutional investors, companies and consumers, in a context favourable to inflation, due to the economic recovery in North America, Europe and Eastern Asia. Exploding housing costs in Europe can particularly fuel investments in cryptocurrencies, with the hope of significant gain.

Read also : Ethereum jumps by 9% amid Tesla’s purchase of bitcoins for $ 1.5 billion

Read also : Bitcoin crosses $ 30,000 for the first time

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