German Banks May Be Allowed to Sell and Store Crypto Next Year
The German authorities are preparing a bill according to which from 2020 German banks will be able to sell cryptocurrencies and offer custodial solutions for crypto assets.
According to the publication of the local publication Handelsblatt, at present, financial institutions operating in Germany are not allowed to directly sell cryptocurrencies to their customers. However, this may soon change thanks to the law that implements the fourth EU Anti-Money Laundering Directive. The bill has already been passed by the German Federal Parliament (Bundestag) and is now awaiting consensus among the subjects of the federation.
The final version of the bill goes beyond the fight against money laundering, as it offers regulated banking institutions to provide services for cryptocurrencies, without relying on third-party custodians and special subsidiaries. The German cryptocurrency community is very encouraged by the new version of the bill.
“Germany is well on its way to becoming a crypto-heaven. The German legislator is playing a pioneering role in the regulation of cryptocurrency,” said Sven Hildebrandt, head of Distributed Ledger Consulting.
If the subjects of the federation approve the proposal, German citizens will be able to store their cryptocurrencies directly in banks. In addition, financial institutions will provide online banking solutions for the entire spectrum of assets, including cryptocurrencies.
The German Private Banking Association, which recently published a call for a “programmable digital euro,” also welcomes the new regulation. The organization claims that its affiliates have experience storing customer assets and managing risk. The new law will help prevent money laundering through cryptocurrencies and will allow German investors to enter the industry through local funds.
However, not everyone is happy with the proposed bill. The Baden-Württemberg Consumer Center is concerned that banks will be involved in the aggressive trading of new products. Financial expert Niels Nauhauser said that banks will target new customers, using all possible means to attract them, and they may not notify customers about the potential risks of investing in cryptocurrencies.
In addition, at the end of last month, the Bundestag said that Bitcoin and other cryptocurrencies could not become money and a means of accumulating capital, and earlier Germany had warned of the risks of using anonymous cryptocurrencies for money laundering.
Author: Marko Vidrih