Although the concept of engineered molecular communication has been around for quite some time, practical approaches with truly biocompatible setups are still scarce. However, molecular communication has a large potential in future medical applications and may be a solution to size constraints of antenna based transmission systems. In this work we therefore present a testbed using biocompatible magnetic nanoparticles. Based on previous work, all testbed components have been improved regarding performance and size, making a large step forwards regarding miniaturisation and a data transmission approach. In addition, a setup for localised twodimensional sensing of magnetic nanoparticles is presented. All improvements are evaluated individually and combined to achieve a net data rate of more than 6 bit/s, significantly higher than any other comparable biocompatible setup.