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40 Plus German Banks Interested in Offering Crypto Services to Clients Under BaFin Law

Saad Ullah

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Over 40 banks in Germany have expressed their desire to support cryptocurrency services under the new law by the German financial regulator, BaFin.

Crypto Banking Services

Reported by a local media Hendelsbatt, the new law has been in effect since the start of the current year which opens up the avenue for banks to provide cryptocurrency based services to their clients which has led to the banks showing their interest in the crypto economy sector. 5AMLD, the 5th Anti Money Laundering Directive changes how financial institutions and banks would see finance and commerce in the whole of the European Union.

While the option is now available to the financial institutions, the approval of is a totally different matter. Currently, the banks have only shown their interest and is not to be taken as grant of operations. According to one member of Bundestag,

“The market is growing faster than the Federal Ministry of Finance has predicted. That is both a blessing and a curse. The high demand for crypto custody licenses shows that companies are increasingly adopting blockchain technology, but is also the result of the new legislation.”

The banks have so far not been mentioned in reports. But Solarisbank is one that has openly shown interest in the past to start servicing and storing cryptocurrencies for clients. The bank’s crypto division has been active for the better part of two years, studying and looking into the prospects of offering digital asset storage. So it is a safe assumption that it is at least one of the 40 banks.

The German Crypto Relations

Germany, although a country that has relative ease when it comes to cryptocurrency acceptance, has a polarized view on them. Only a few days ago, a report by the Deutsche Bank had stated that cryptocurrencies were far from gaining the trust of the larger public and as such, were doomed with fiat coming out as the winner. On the other hand, a collection of German banks have expressed their concern over how the Euro will lag behind and to counter it, the creation of centrally backed digital Euro is the need of the hour.

Globally, the German banks are not the only one who are eyeing capturing the crypto market. A bill presented in the United States Senate asks for making legal for Hawaiian banks to store digital assets that include blockchain tokens, virtual currencies and other digital forms of securities.

 

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