Germany's Federal Financial Supervisory Authority (BaFin) ordered the Coinbase unit in Germany to ensure that the business organization is conducted properly. Germany's BaFin said it found violations in the requirements for proper business organization in Coinbase Germany's operations. BaFin stated that the company's business organization did not comply with local laws. The authority said it carried out an audit into the exchange's German unit and found 'deficiencies in organizational management'.
BaFin said it found a lack of organization in the company, although it was not clear about the relevant aspects. It shows that the business organization is not consistent across all areas under audit. The Federal Financial Supervisory Authority released a statement saying the order was issued on September 27, 2022.
“An audit of the annual financial statements revealed a lack of organization at the institute. The regularity of the business organization was not properly managed in all audited areas.”
BaFin's statement comes as the exchange tries to expand its business wing in the European market. A U.S.-based exchange. has proposed to a top executive from a German fintech company. On October 17, Coinbase hired Daniel Seifert, chief operating officer at Solarisbank, as part of its expansion plans in Europe. On the positive side, the company recently gained regulatory approval in Italy and the Netherlands.
Coinbase is awaiting regulatory license approval in France and Spain. Waima so bad news, the crypto exchange also laid off thousands of workers in the U.S. at the beginning of this year. Meanwhile, Coinbase's share price ($COIN) has been on a downward curve for the past few days. Over the past five days, the price of $COIN fell by 17.54%, making the stock price currently at $56.97.
