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40 German banks to offer crypto services under new law

by Blocks99

5 days ago

More than 40 financial institutions in Germany have reportedly told the country’s financial regulator BaFin that they want to offer crypto services under the new German law.

The German regulator BaFin has received more than 40 expressions of interest from banks for approval to operate crypto services including crypto custody business in the future, according to the German finance publication Handelsblatt.

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.

BaFin has 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 have been told they are subject t money-laundering law.

Banks offering crypto services

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 said.

(Source: MIT Technology Review)

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