Germany’s WEG Bank has obtained a cryptocurrency trading license in Estonia. The announcement was made on the 25th of August through the bank’s Twitter account.
Working out of a premium regulatory environment is one of our key assets. We announce that as of today we have secured full access to a crypto trading and custody license in Estonia and are equally applying for a securities trading and custody license in Germany.
— WEGBank (@weg_bank) August 26, 2019
The bank is now permitted to facilitate cryptocurrency trading in Estonia. The services WEG Bank will provide to crypto traders and investors include crypto to fiat, crypto to crypto and fiat to crypto transactions.
The bank’s clients will gain direct access to a range of crypto products and this improves the services the bank can offer its clients.
WEG Bank added that they are working towards getting a similar license from German authorities.
The bank is working towards becoming one of the leading cryptocurrency trading players in Europe and obtaining this trading license in Estonia is a step in that direction.
Tighter Estonian laws regarding crypto licensing
Prior to WEG Bank receiving the crypto trading license, Estonian laws regarding cryptocurrency were tightened.
Since May when the tighter regulations were announced, financial institutions seeking a crypto trading license have had to face stricter requirements.
Some of the regulations that were made stricter include the time it takes to process an application for the license, the establishment of the company in Estonia and that the board of directors needs to be based in the country.
Meeting these requirements places WEG Bank in a small pool of banks that would be able to do the same.
According to Estonia’s Minister of Finance, Martin Helme, the country had to place stricter laws in place because of the risks that come with cryptocurrency. Although these tighter laws have been put in place, WEG Bank was able to satisfy the authorities and obtain the license.
Crypto investors can trust that their investment is in safe hands when they deal with WEG Bank. Part of the regulatory requirements is that a financial institution should have a track record of having performed crypto transactions and that they can give their customers a secure wallet service.
Growing cryptocurrency affiliations
A few crypto startups have acquired stakes in WEG Bank and these partnerships are at the center of the bank’s cryptocurrency projects. Earlier this year, Niqim acquired a 9.9% stake in WEG Bank.
The firm has a browser based blockchain system for the facilitation of payments. Niqim’s system will be used to facilitate the crypto-fiat transactions for WEG Bank. Clients will be able to buy cryptocurrency on the web with ease.
About a month after Niqim’s acquisition of stakes, TokenPay acquired 9.9% of WEG Bank’s share certificates. Litecoin Foundation also holds a stake in the bank. The total number of stakes owned by crypto related businesses goes over 30%, and this shows that the bank is committed to becoming a leader in the crypto industry.