January 27, 2023

German banks will be allowed to sell cryptocurrencies from 2020

German banks will be allowed to sell cryptocurrencies from 2020

The local news agency Handelsblatt reported that under the fourth EU Directive to combat money laundering, since 2020, banking institutions will be able to handle operations with digital assets. The bill has already been passed by the Bundestag, the German federal parliament.

By next year, banks will be able to providecryptocurrency investments along with traditional securities such as bonds and stocks. According to the head of the consulting company DLC Sven Hildebrandt, the German lawmaker acts as an innovator in the regulation of cryptocurrencies.

According to the final version of the project, banks have the authority to process cryptocurrency transactions without the need for external custodians or special subsidiaries.

New instruction welcomed by the AssociationGerman banks, according to which, the experience of credit institutions in storing customer assets and risk management is of paramount importance in preventing money laundering in the cryptography sector.

Since Bitcoin and other cryptocurrencies areA hotly debated topic in the investment world, some German financial experts, notably Niels Nauhauser from Baden-Württemberg, are worried that new opportunities may make banks more aggressive in selling digital assets to investors.

In fact, banks sell various financialproducts and for this they receive a fee in the form of a commission for the services provided. If they are allowed to sell cryptocurrencies and charge a fee for this service, there is a risk that the client will be at a loss, not knowing for sure the future benefits, said Naushauser.

While banking institutions are interested in cryptographic business revenues, financial consumer protection should not be undermined.