German banks introduce crypto custody services

More than 40 German banks became interested in the possibility of storing and working with cryptocurrencies after joiningby virtue of a new law earlier this year, reports the local publication Handelsblatt.

German authorities respond to the Fifth DirectiveThe EU on anti-money laundering by allowing regulated financial institutions to operate cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), along with stocks and bonds. According to the definition, they include any “digital representation of value that is not issued and guaranteed by the central bank or state authorities, is not necessarily legally recognized currency, but is accepted by individuals or legal entities as a means of payment that can be transferred, stored or exchanged in electronic form. "

“The high level of demand for crypto-custodial licenses, on the one hand, demonstrates that companies are increasingly adopting blockchain technology, but is also the result of new legislation”- said Frank Scheffler, a member of the Bundestag.

According to Handelsblatt, the German Federal Financial Supervisory Authority (BaFin) "has already received over 40 confirmations of banks' interest in the future crypto-custodian business."

Among others, Solarisbank contacted BaFin,A German fintech company with a banking license that opened the Solaris Digital Assets division for storing bitcoins and other cryptocurrencies with the permission of the authorities.

“We have been actively working on the storage of cryptocurrencies for a year and a half,– said the head of crypto banking at Solarisbank, Michael Offermann.

New regulation is a great moment tostart practice. In the end, we are not a research institution, but a commercial bank. Digital assets will fundamentally change financial markets. As soon as buying and storing bitcoin and others like it becomes easier, we expect to see significant growth. ”

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