Germany Could Soon Become Crypto Heaven

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A new proposed law in Germany is supposed to support the sale and safekeeping cryptocurrencies such as Bitcoin from 2020 onward. With this bill, Germany is on its way to becoming crypto heaven. German newspaper Handelsblatt broke the news online after it passed through the Bundestag in late November. The bill is an amendment to the 4th European Union Money-Laundering Directive and will enable banks and financial institutions to store cryptocurrencies with third-party custodians.

Effective January 1, 2020, the bill is music to every cryptocurrency owner’s ears, although things are a bit more complicated than it seems. Financial institutions should obtain licenses first before they can store and safe-keep cryptocurrencies, with the deadline for said licenses being extended.

Music to the Ears of Crypto Owners

The news was met with a positive response from the German and European crypto community. Currently, distribution for the banks was only possible through special bonds which is not the case with the direct sale of Bitcoin and other cryptocurrencies. The new law will change that as soon as the financial institutions obtain special crypto licenses that will allow them to store Bitcoin.

However, some experts are concerned with consumer protection under the new law. Consumers may be allured to invest in cryptocurrencies and store them in banks without having any idea of the risks involved. Due to this, many could lose their investments.

The German Legislator plays a pioneering role in the regulation of crypto assets. Thanks to the already passed bill, German crypto owners will be able to invest in cryptocurrencies via local funds instead of being forced to put their money abroad. This will help the country prevent money laundering and terrorist financing.

At the same time, the move should open up the door to several profitable crypto industries including Bitcoin gambling. The crypto gambling community is excited about the idea and Germany could soon become a new mecca for Bitcoin players.

A Crypto Gambler’s Heaven?

Although there are still things to be ironed out regarding the new law, it will effectively legalize cryptocurrencies in the European country and open up the door for profitable businesses. Crypto gambling is one of them.

An industry on the rise, Bitcoin is becoming more and more interesting for Bitcoin online casinos. The online gambling industry is generating billions per year and supporting local economies all over the globe. With the new bill going live in less than a month, it could turn Germany into a gambler’s heaven.

Caution, however, still remains after the Bundestag recently released a report claiming that Bitcoin and other cryptocurrencies are not real money. European Central Bank board members have also expressed concern, stating the cryptos raise a risk across a broad range of policy domains. As we’ve seen far too often, laws can change in unpleasant ways. At the moment, though, Germany looks set to become the first European crypto heaven, and Bitcoin owners have the right to enjoy it, at least while it lasts.

December 4, 2019: • No Comments

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