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- The German government has recently passed a new law that has created a rush amongst 40 German banks to apply for crypto custody and services.
- Adopting Blockchain technology is something that the banks have been striving for a while.
- According to Handelsblatt, which can be considered as Germany’s FT or WSJ, mentions statements made by the government officials in reporting Bafin, Germany’s SEC or FCA.
The German government has recently passed a new law that has created a rush amongst 40 German banks to apply for crypto custody and services. The fifth European Money Laundering directive was introduced on 1st January 2020.
It reframes the previous law regarding crypto services and allows banks to consider Bitcoin, Ethereum, and other crypto-assets just like stocks or bonds. Thus, permitting them to offer the same services that they offer for traditional stocks and bonds.
The law considers all kinds of tokens as the law defines cryptos to be,
This definition of crypto assets means that the banks are now able to offer purchase and sale of Bitcoin, Ethereum, and other cryptocurrencies. Moreover, the banks can even provide services that let the users store these digital assets in the bank as if they are traditional bonds and stocks.
Frank Schäffler, a member of the German Parliament, stated that the increasing demand for crypto custody licenses made by the various banks is a good thing. Adopting Blockchain technology is something that the banks have been striving for a while. Now, with the introduction of the new bill, they can do so with relative ease.
According to Handelsblatt, which can be considered as Germany’s FT or WSJ, mentions statements made by the government officials in reporting Bafin, Germany’s SEC or FCA. The statement reads it “has already received more than 40 expressions of interest from banks for permission to operate the crypto custody business in the future.”
It has not mentioned the names of the banks involved but has stated that the goal is to make Germany a popular location for crypto-based businesses.
