A recently passed law in Germany appears to have created a rush to market with a local paper stating 40 licensed banks have applied to offer crypto custody and services.
The Fifth European Money Laundering directive, which came into effect on the 1st of January, updates the law to include crypto services and in the process gives banks permission to treat bitcoin or ethereum as stocks or bonds and so offer likewise services.
This applies to tokens too as the law defines cryptos very broadly as “a digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically.”
Meaning banks can now offer the buying and selling, as well as the storing, of bitcoin and ethereum or tokens like MKR just as they do for stocks and other assets.
“The high demand for crypto custody licenses shows that companies are increasingly adopting blockchain technology, but is also the result of the new legislation,” Frank Schäffler, a member of the German parliament, is quoted as stating.
Handelsblatt, which can be described as Germany’s FT or WSJ, cites government officials in reporting Bafin, Germany’s SEC or FCA, “has already received more than 40 expressions of interest from banks for permission to operate the crypto custody business in the future,” according to a rough translation. Read More...