German Banks Applying for Crypto Services

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Last year, many European countries finally took a clear stance on Bitcoin. While some have outlawed it, others, like Germany, have realized the benefits of cryptocurrencies in general. German banks have recognized Bitcoin just before the end of 2019 and now they’re applying to offer crypto custody and services.

The 5th European Money Laundering Directive came into full effect from January 1, 2020. The updated EU law clarifies things about Bitcoin and other cryptos and allows banks to treat both as bonds or stocks. It applies to tokens as well since the directive considers cryptocurrencies a much broader digital representation of value.

German Banks Now Seeking Approval for Crypto Custody

The Fifth European Money Laundering Directive considers cryptocurrencies a very broad range of digital representation of value not guaranteed by a bank nor attached to legal currency. However, it is accepted by legal or natural persons as a means of exchange that can be stored or transferred electronically.

According to Handelsblatt, Germany’s financial ‘watchdog’, over 40 banks have expressed interest in offering crypto services. The names have not yet been released to the public, but the interest is there. This shouldn’t be so much of a surprise. After Germany announced its intentions to become the go-to location for cryptos, banks have been open to the idea of storing Bitcoin and cryptocurrencies. This is great news of European crypto-traders since interest in cryptos and the blockchain is on the rise.

One of the banks interested in Bitcoin is Solarisbank. The bank’s head of crypto banking confirmed that Solarisbank plans to enter the crypto game with the updates of the Money Laundering Act now into place. More banks are expected to follow Solaris’ example which will be a major shift in crypto regulation across Europe.

All institutions (e.g. banks) that want to provide crypto services should apply and register their interest with Germany’s regulator by the end of March. They won’t be approved at once – a transitional period will commence until November 2020. The market, according to Frank Schaffler from the Free Democratic Party, is growing much quicker than expected. This, as experts have noted, is a blessing and a curse. A blessing because more institutions are starting to recognize the potential of cryptocurrencies and a curse because it might be temporarily fuelled by the new legislation.

Nevertheless, the fact that Germany now openly accepts cryptocurrencies will surely be celebrated by millions of people.

The New Legislation Might Make Germany a Crypto Haven

Now that German banks are officially open to the idea of Bitcoin, this should open up a world of possibilities. The blockchain is an exciting technology that might act as a fuel to various industries including crypto gambling. Bitcoin online casinos are sure to appear on the market as soon as German banks start trading crypto. It’s an exciting digital world out there with endless possibilities, and Germany is first in line to take it all in.

February 12, 2020: • No Comments

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