Coinbase by the German Supervisory Authority BaFin, complained about business structure

The German financial supervision censored the Coinbase crypto exchange after an annual examination, which raised questions about its institution in Europe's largest economy.

The Bafin has instructed Coinbase to ensure that it has a "proper" business structure after an examination by Deloitte "organizational defects" in the organization of the German unity of the group, the supervisory authority said on Tuesday.

Deloitte gave the financial data of Coinbase an unrestricted confirmation note in May, which means that they were presented correctly and fairly, but the auditing company pointed out organizational defects at the supervisory authority.

The BaFin reference marks the latest blow for the coin base listed in the USA, which is one of the largest actors in the digital assets industry. The company announced last week that it had a loss of $ 545 million in the third quarter, since a severe decline in crypto prices pressed its trading volume this year.

Coinbase, whose shares have been collapsed by almost 80 percent since his direct listing in April 2021, has also announced plans this summer to relieve almost a fifth of his workforce, which corresponds to more than 1,000 employees.

The BaFin complaint comes after Coinbase was the first group to be the first group to offer German financial supervision to offer crypto protection and self-retail services.

The Coinbase BaFin permit was part of the swivel in the entire industry to Europe before the expected EU-wide regulations that are supposed to coordinate the block of the block in terms of crypto. In the past few months, Coinbase and Crypto.com have secured registration in Italy, while the competitor Binance received registrations in France, Italy and Spain.

The supervisory authorities have tightened their examination of the crypto exchange to improve consumer protection and ensure that the venues take sufficient measures to prevent money laundering, sanction violations and other criminal activities on their platforms.

A problem that the supervisory authorities often addressed is that crypto exchanges that together process more than $ 1 trillion per month often have complex and opaque corporate structures. Binance, the largest crypto exchange, says, for example, that she has no formal headquarters. The BaFin had warned investors last year that Binance probably violated securities rules when introducing stocks.

Coinbase did not react immediately to a request for comment on the message, and the Bafin refused to state further details.