Over 40 banks have announced the Federal Financial Supervisory Authority of Germany (BaFin) that they are interested in providing crypto-custody services. According to a report published by the German news site Handelsblatt:
“According to information from government circles, Bafin’s financial regulatory authority has already received over 40 expressions of interest from banks for permission to operate crypto custody in the future.”
One of the 40 applicants is the bank technology company in Berlin, SolarisBank AG, supported by Visa. In addition, SolarisBank has previously announced the launch of its subsidiary – Solaris Digital Assets GmbH, which aims to provide custody services. One of the bank’s representatives, Michael Offermann said:
“We deal intensely with the custody of cryptocurrencies for a year and a half. The new regulation in the new Law on money laundering is a good time to start practically. After all, we are not a research institute, but a commercial bank ”
BitGo crypto custody services
Another digital asset management company, BitGo, has announced plans to expand with new custody services in Switzerland and Germany. BitGo Deutschland GmbH is currently offering custody services in Germany and plans to apply for a crypto custody license from BaFin by November 20th.
Mike Belshe, BitGo CEO said:
“I saw a very high demand in Europe last year and it was clear that the customers there had to be able to work with European companies that were regulated in specific jurisdictions. Switzerland and Germany have become both important European centers for digital assets and for anticipated regulatory frameworks. Regulatory compliance is a prerequisite for our customers and we were impressed with the understanding and support of the Swiss and German regulatory authorities. ”
BaFin recently launched a series of guidelines on the procedures to be followed by crypto companies serving German customers. These companies will fall under the umbrella of the new law on the custody of crypto assets that entered into force on January 1, 2020.
Companies must confirm their intention to apply for an operating license by March 31, 2020.
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