Several banks in Germany seek the regulatory approval to provide crypto services as per the Anti-Money Laundering regulation.
The Federal Financial Supervisory Authority (BaFin) is reviewing applications from 40 banks seeking to provide crypto services.
In addition, the legislation gives all institutions engaged in cryptocurrencies a transitional period until November 2020. Nevertheless, all market participants will register their interest with BaFin no later than end of March.
Frank Schäffler, a member of the Free Democratic Party, said:
“The market is growing faster than the Federal Ministry of Finance has predicted. This is a blessing and a curse. The high demand […] shows that more and more firms accept blockchain technology, but can also be seen to be a result of the new legislation.”
Berlin Solaris Bank is the first institution to apply with BaFin. Michael Offermann, head of crypto banking at Solaris, said:
“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.”
The Association of German Banks stated that argued that supervised banks have enough expertise to guard their client assets.
Cryptolydian earlier reported that Germany’s financial sector is not allowed to have any dealings with cryptocurrencies. However, the government approved a bill in November allowing banks to sell cryptocurrencies.
“Some countries now consider cryptocurrencies legal tender, while many viewing them as commodities,” said Alina Kiselevich, employee at Enigma Securities.
“Governments around the world are keenly aware of the problem that the technology is rapidly outpacing the laws that govern it,” Kiselevich added.