It’s been a few months since the legislation bill was initially drafted to allow for Germany-based banks to act as custodians for crypto. Since then, the bill had passed and is now starting to begin its implementation phase. Banks all across Germany, more than 40 in total, have made their declarations of intent to be part of this service to the German financial regulator, BaFin.
New Implementation Period
Handelsblatt, a local business-oriented news outlet, reported that the banks are declaring their intent for offering services related to cryptocurrencies. These services are only capable of being done thanks to an update in the anti-money laundering laws that had occurred quite recently. Under the new laws, banks are mandated to gain a license for these services by way of BaFin. In particular, the permissions stands for online banking services that may include crypto, yes, but also bonds and stocks.
The financial institutions that already offer these services, will now be given a grace transitionary period. This period, ending in November of this year, will be enough time for all institutions to notify BaFin of their intentions of gaining the new license by March’s end.
Crypto Firms Breathing At Ease
One of these financial institutions, Solarisbank, is based in Berlin. It stands as one of the first banks within the country to provide services related to cryptocurrencies. The firm launched Solaris Digital Assets back in December 2019, a subsidiary explicitly built for the crypto industry.
Micheal Offerman stands of the head of Solaris’s Crypto Banking division. He stated that they were having great dealings when it comes to crypto custody. Thanks to the new regulations within the Money Laundering Act, it becomes an excellent time to hold a solid start. He reminded the world that Solarisbank was a commercial bank, first and foremost, and not a research institute.
Potential For Crypto Supremacy
Should a bank be granted the appropriate license, they will be capable of storing various forms of crypto on the customers’ behalf. As it stands now, Solarisbank holds a full banking license and has been offering its services to multiple startups in the fintech industry.
Germany stands at the cusp of becoming one of the great crypto havens of the world, should it be capable of executing it properly. If banking firms and crypto firms band together within the country, it will have a substantial boost in the amount of money flowing through its borders.