Germany Financial Supervisory Authoritydicamillocoindesk

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Germany Regulators Orders Coinbase to Deal With ‘Organizational Deficiencies’

Regulators have been very tough on cryptocurrency exchanges. In one such move, the regulators from Germany took a tough stand on the local unit of Coinbase. The Financial Supervisory Authority has ordered Coinbase to ensure that risk management practices and internal controls are in place. The order came after an audit report highlighted organizational deficiencies in Coinbase management.

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Federal Financial Supervisory Authority, known as BaFin, also said that Coinbase was found to be violating the rules of the German Banking Act. The rules pertain to Section 25(a) of the law. The organization should maintain risk-bearing capacity, emergency management mechanism, and adequate headcount to manage the systems as per the rules. The scope covers the IT infrastructure and the remuneration system for the employees. The rule also talks about having a system that can accurately reveal the organization’s financial position in real-time.

Germany Financial Supervisory Authoritydicamillocoindesk

The news came after a turbulent year that led many big players in the cryptocurrency domain to file for bankruptcy. The move is taken to safeguard the interest of investors. The levels of scrutiny are expected to be higher than ever. The agencies are now focusing on risk management by these cryptocurrency exchanges. Another country that is critical of risk management in these organizations is Singapore. So Germany Financial Supervisory Authoritydicamillocoindesk means Crypto Exchange Coinbase Germany Ordered by Regulator to Tackle Organizational Deficiencies .

In a blog post, Coinbase mentioned that it is working toward the welfare of its customers and is committed to providing trusted solutions to the users of the crypto service. As per a report from CoindDesk, it was revealed that Coinbase is cooperating to address the audit findings and comply with the policies. The remediation plan has been developed, and it addresses all the findings raised by BaFin. The company plans to share the progress with the regulators to gain the confidence of its customers.