News

Over 40 German Banks Show Interest in Offering Cryptocurrency Services

Over 40 banks in Germany have shown an interest in offering cryptocurrency custody services to their clients. These banks have applied for a license with the country’s financial regulator, Germany’s Federal Financial Supervisory Authority (BaFin). Upon approval, they will offer custodial services for cryptocurrencies. This will include Bitcoin, Ether, XRP, etc. to their various clients, according to a local media report.

More Than 40 German Banks Want to Offer Crypto Services

Per the report, more than 40 banks in Germany have shown an interest in offering cryptocurrency services to their clients. Also, these banks have filed a request with BaFin, the country’s financial regulator. Upon requests approval, the banks will become regulated cryptocurrency custodians. Hence, they can keep custody of digital assets including Bitcoin, Ether, and XRP, for their customers.

Further reports reveal that this high number of requests came in the face of the new Money Laundering Act, approved by the German government. The Act came into effect on January 1, 2020, and it allows financial institutions in Germany to offer assets including cryptocurrencies to their clients. Banks can also be custodians of these assets.

Banks Must Obtain a License from BaFin

However, banks that seek to offer these assets have to obtain a financial supervisory license from BaFin. Financial institutions that offer crypto services in the country have until the end of November 2020 to do this. In line with that, institutions looking to start or continue the offer of crypto services have at least until the end of March this year to submit an application to BaFin.

Frank Schäffler, a member of parliament for the Free Democratic Party while making comments remarked that the high level of interest in the country is impressive.

According to Schäffler:

“The market is growing faster than the Federal Ministry of Finance has predicted. This is a blessing and a curse. The high demand […] shows that more and more firms accept blockchain technology, but can also be seen to be a result of the new legislation.”

Germany Classifies Cryptocurrencies as Digital Representation of Value

On the other hand, Germany, in its draft law, classifies crypto assets as digital representations of value. It adds that these assets are neither issued nor guaranteed by the central bank or public body. Also, the country outlines that crypto-assets do not attain the legal status of money.

BitGo, a digital assets financial services firm recently launched a custodial entity in Germany. According to the firm, Germany has become one of the important European centres for digital assets and forward-thinking regulatory frameworks.

Related posts
BitcoinBTC Trading ViewNewsNews 1SocialTrading View

What should you know about Bitcoin's supply shortage?

Following a massive recovery from the drop below the $49,000-level, Bitcoin made a comeback to hit $54,000 on the charts. However, while BTC’s price performance is worth noting, what might have been mThe post What should you know about Bitcoin’s…
ADAUSDAltcoinsBinance CoinbnbusdCardanoCryptocurrency NewsNewsRippleXRP NewsXRPUSDXRPUSDT

Why the crypto community has its eyes peeled out for these 3 altcoins

Altcoins have been dabbling between a bullish and a bearish storm since the year began. For the most part, the bulls have taken charge, forcing different assets to switch positions as the market cap surpasses the other. With the new…
21shares21XC21XEAmunBCHBitcoin (BTC)Bitcoin Cashbitcoin cash BCHBitcoin.comETHetherEthereumEthereum (ETH)ETPsExchange-Traded Productfinancial productsinstitutional-gradeNewspolkadot (DOT)

21shares Launches Bitcoin Cash and Ethereum ETPs on Deutsche Boerse’s Xetra

The cryptocurrency exchange-traded products (ETP) provider 21shares AG, formerly known as Amun, has announced the launch of two new crypto asset ETPs on Deutsche Boerse’s Xetra. The 21shares ETPs will leverage the cryptocurrencies ethereum under the ticker “21XE,” and bitcoin…

Leave a Reply

Your email address will not be published. Required fields are marked *