The financial giants working in Germany are now taking interest in the cryptocurrency and many of these applied to get the license from the legal authority. The legal consent is now mandatory in all the European countries to run a crypto-related business.
The European Union (EU), as reported earlier, implements the new law to control the criminal activities- linked with the digital currency. The new law, known as the fifth European Money Laundering Directive, came into effect on Jan.1, 2020.
All the states in the EU are now obliged to follow the crypto law, and implement it under government supervision. The government of Germany is carrying out very serious measures in this regard as the Federal Financial Supervisory Authority (BaFin) will permit anyone to run a crypto or blockchain business.
BaFin also puts the financial firms under the law that want to offer custody services for digital currencies such as bitcoin, Ethereum, and Ripple.
40 Banks are Interested in Crypto
As reported by a German newspaper Handelsblatt, 40 different banks contacted the BaFin to offer their customers the custody service of cryptocurrency. Banks that are interested to offer any kind of crypto service are also submitted the application to get the license. This shows to which extent, the banks of Germany are turning to the digital currency and the whole scenario foreshadows the bright future of the cryptocurrency and blockchain.
However, out of 40 different banks, only one bank bubbles out on the screen that is known as Solarisbank. Solarisbanks developed a crypto platform, Solaris Digital Assets, to accommodate its customers. They have a plan to store bitcoin and other digital currencies if they get the legal notice from BaFin. The head of digital assets department Michael Offermann expressed his view while talking to Handelsblatt:
‘’We have been working intensively on the subject of crypto custody for a year and a half. With the new regulations in the new Money Laundering Act, now is a good time to get started in practice. After all, we are not a research institute, but a commercial bank.’’’
Bright Crypto Future
According to him, the future is very bright for the cryptocurrency and we have already witnessed a bullish growth in the crypto ecosystem. As he commented:
‘’Digital assets will fundamentally change the financial market. As soon as it becomes easier to buy and hold Bitcoin and Co., we expect strong growth. The sales potential in the first year is already in the seven-digit range.’’
The main issue for acceptance of digital currency in place of fiat currency is its unregulated nature. When it will regulate properly, it can be adopted at all levels. That’s the thing Germany including the other members of the European Union are doing.
A German parliament member Frank Schäffler said:
‘’The market is growing faster than the Federal Ministry of Finance predicted. This is both a blessing and a curse. The high demand for crypto-safekeeping licenses shows that companies are increasingly adopting the blockchain technology, but is also a result of the new legislation.’’