June 19, 2024

AMLD5 boosts interest in crypto assets among institutional investors in the EU

According to the director of the cryptocurrency department of the Stuttgart Stock Exchange, the new EU regulation onThe fight against money laundering has increased interest in crypto assets among institutional investors.

During a speech at the London ConferenceCryptoCompare on Tuesday, Ulli Spankowski, director of digital technology at Stuttgart Stock Exchange, admitted that he was surprised at the positive effect that the Fifth EU Anti-Money Laundering Directive (AMLD5) had on the interest of traditional financial institutions in cryptocurrencies.

“In fact, I didn’t think that something would happen.similar, because banks and other financial institutions can already store cryptocurrencies and trade them. But since the law came into force earlier this year, we have seen great interest from traditional market players, ”Spankowski said.

AMLD5 directive requires cryptocurrencyCompanies based in EU Member States were registered with local regulatory authorities, implemented KYC rules for their customers, and stored information about the sources of their funds.

Some regional cryptocurrency firmsannounced plans to leave the EU shortly after the directive came into force. Thus, the cryptocurrency derivatives exchange Deribit “moved” from the Netherlands to Panama due to new rules, and shortly after that, the non-custodial exchange KyberSwap changed jurisdiction from Malta to the British Virgin Islands.

In addition, the Stuttgart Stock Exchange addedhas listed several crypto financial products on its main trading platform, and last September it launched the regulated crypto asset trading platform BSDEX.

“Cryptocurrency is now in the legal field, and once the regulator allows you to obtain a license for companies related to crypto assets, then their activity is legal,” Spankowski said.

With 120 institutional clients and an “open relationship” with the main German financial regulator, BSDEX can now act as a reliable “gateway” for the digital asset class.

“We could become a conductor for cryptocurrencyindustry in Europe, because the traditional financial system is already connected with us on a European scale, ”said Spankowski. “We think that this will be the most successful development direction for us.”