Crypto Custodian Finoa Bags Operational License From Bafin
Several regulatory agencies worldwide have been making moves to stamp their authority over the crypto industry in recent months. The FTX and other big crypto crashes in 2022 brought much attention to the market.
Nevertheless, Germany’s Financial Supervisory Authority (BaFin) is going against the trend of tightening regulations by giving three operating licenses to a crypto custody company, Finoa.
Finoa, the leading digital assets management platform in Europe, was established in 2018 by Christopher May and Henrik Gebbing. Finoa obtained a preliminary cryptocurrency custody license in 2020. This license meant the firm could only offer limited services.
Good News For Finoa
The company completed a strategic venture round successfully. Middlegame Ventures, a new investor, and other current investors such as Coparion, Balderton Capital, Signature Ventures, and Venture Stars led this funding round.
According to the reports, the amount Finoa realized from the fundraiser was not disclosed to the public. The stamp of approval from the German Financial Supervisory Authority couldn’t have arrived at a more opportune time, according to Chris May, the co-founder of Finoa.
This is especially true in light of the regulatory clampdown on the crypto market in the last few weeks, including a recent announcement by the US SEC to enforce its regulatory actions on crypto custodians.
Finoa’s Edge Over Its Competitors
In a recent interview, May claimed that the crypto custodian’s custody licenses give it a massive edge over its competitors. He also stated that the preliminary regulatory status that the company has been operating under since the beginning of 2020 adheres to the same checkpoints and requirements that the SEC carried out a few weeks ago.
In addition to receiving the clearance for custody, Finoa also obtained a green light for prop trading and broker-dealer licenses. These licenses will enable the company to trade with its treasury but not against its clients.
In 2021, Finoa completed a Series A funding round that brought in $22 million. As part of obtaining licensing approvals, May said, “one of our goals was to improve our statutory or regulatory capital.”
In addition, he noted that adding millions of dollars to the company’s financial sheet indicates trust from the company’s clients. However, it also enables the company to exploit the licenses fully.
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