January 27, 2023

Germany may legalize the storage of cryptocurrency in banks

Germany may legalize the storage of cryptocurrency in banks

In Germany, a bill has been introduced, suggesting the possibility of storing bitcoins in local banks with next year, writes Handelsblatt.

According to the publication, in Germany there may beA new set of rules has been established for the activities of regulated financial institutions, which may be allowed to sell and store cryptocurrency. In accordance with the current rules, such services cannot be offered by legal entities providing banking services. If the bill is approved, access to cryptocurrencies for customers can be implemented in the same online banking interface that is used to work with securities.

Head of consulting company DLC SvenHildebrandt was optimistic about the new proposal, noting that Germany could become a “crypto paradise” and set trends in the regulation of digital assets.

Representatives of the BdB Banking Association also gavea positive response, emphasizing that regulated financial institutions are well equipped to carry out tasks related to the storage of assets and combating money laundering, and investors will no longer have to seek help from foreign funds for the purchase of cryptocurrencies.

However, not everyone supports the proposal. Finance expert at the Baden-Württemberg Consumer Protection Center Nils Nachauser said that banks are too aggressive in finding new customers, and adding cryptocurrencies to their portfolios can lead to unforeseen losses:

“In fact, banks sell a lot of differentfinancial products for a commission. If they are allowed to sell and store cryptocurrencies, customers risk losing their assets without even realizing what they are getting into. ”

It is noteworthy that the draft law is being considered as part of measures to ensure compliance with the requirements of the EU Anti-Money Laundering Directive.