40 Banks in Germany Declare Intent to Offer Crypto Services Under New Law
More than 40 financial institutions in Germany have reportedly declared to the country’s financial regulator, BaFin, their interest to offer cryptocurrency services under the new German law. News.Bitcoin.com reached out to the regulator for some more information. The law, which went into effect early this year, enables banks to offer crypto services after obtaining a license from BaFin.
Also read: Bitcoin, Tesla Stock, Tron: How Warren Buffett Got His First Bitcoin Declaration Submitted by 40 Financial Institutions
BaFin has received more than 40 “expressions of interest” from banks for approval to operate a crypto custody business in the future, German publication Handelsblatt reported Monday.
News.Bitcoin.com reached out to BaFin for more details. A spokesperson for the regulator clarified that expressions of interest are not applications for permission. He explained that even before the new law came into force, BaFin had asked companies that were already providing crypto custody services and are therefore subject to BaFin’s mandatory authorization to submit informal, non-binding expressions of interest. The spokesperson, however, would not comment on the number of banks that have submitted this expression of interest.
The new German Money Laundering Act which went into effect at the beginning of the year allows financial institutions to offer their customers cryptocurrencies alongside traditional investment products, such as stocks and bonds. Expressions of Interest to Offer Crypto Services
BaFin explained that companies will not receive an immediate acknowledgment of receipt or an assessment of the information submitted on their expression of interest. This voluntary action does not replace the formal notification of intent pursuant to Section 64y KWG, the regulator noted, adding: The law implementing the amendment to the Fourth EU Money Laundering Directive … came into force on January 1, 2020 … These companies are therefore subject to money laundering law from 01.01.2020 regardless of the time of submitting the notification of intent.
Solarisbank
One of the first financial institutions to offer cryptocurrency services is Solarisbank in Berlin. The bank launched a subsidiary, Solaris Digital Assets, in December last year to drive the adoption of digital assets. “As a subsidiary of Solarisbank AG, Solaris Digital Assets plans to fulfill the regulatory requirements of the German market and ensure the compliant storage of digital assets, so that partners do not have to apply for a license themselves,” the company affirmed at the time. In the event of a successful application for a custody license from BaFin, the bank plans to store bitcoin and other cryptocurrencies on behalf of the customer, Handelsblatt conveyed.
Solarisbank has a full banking license and has been providing services to numerous German fintech startups. “Digital assets will fundamentally change the financial market,” Michael Offermann, Managing Director for crypto banking activities at Solarisbank, told the news outlet. “As soon as it becomes easier to buy and store bitcoin … we expect strong growth.” He elaborated: We have been dealing intensively with the topic of crypto custody for a year and a half … The new regulation in the new Money Laundering Act is a good time to start practically. After all, we are not a research institute, but a commercial bank.
What do you think of all these banks eager to offer crypto services? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Images courtesy of Shutterstock.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. Share this story: Tags in this story AMLD5, anti-money laundering, approval, Bafin, banks, Bitcoin, BTC, crypto assets, Cryptocurrency, Digital Currency, directive, EU, expression of interest, german, Germany, intent, Law, License, regulator, Solarisbank, virtual assets, Virtual Currencies Related 312 Crypto Exchanges Registered in Australia, Regulator Confirms REGULATION | Kevin Helms
A growing number of cryptocurrency exchanges have been registered with Australia"s crypto regulator. A spokesperson for the government agency overseeing… read more. ”Decentralized Networks a Powerful Phenomenon” – Why the SEC Commissioner Proposes Time-Limited Grace Period for Tokens REGULATION | Kevin Helms
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has formally proposed a grace period of three years for tokens.… read more. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Please enable JavaScript to view the comments powered by Disqus.