40 German Banks Show Intent to Offer Cryptocurrency Custody Services

Over 40 banks in Germany have declared to the country’s financial regulator, BaFin, intent to offer cryptocurrency custody services under a recently approved law.

According to local news outlet Handelsblatt, the banks’ intention to offer digital currency-related services fall under a new update anti-money laundering low that was approved earlier this year, ordering banks to obtain a license from BaFin to offer online banking services that may include operations with stocks, bonds, and cryptocurrencies.

The financial institutions already offering similar services will have a transition period ending in November 2020, and must notify BaFin about their intentions to obtain a license by the end of March.

Solarisbank, a Berlin-based financial institution, was one of the first in the country to offer cryptocurrency-related services. It even launched Solaris Digital Assets, a subsidiary dedicated to the crypto space, in December 2019.

Michael Offermann, head of crypto banking at Solaris, was quoted as saying:

We have been dealing intensively with the topic of crypto custody for a year and a half. The new regulation in the new Money Laundering Act is a good time to start practically. After all, we are not a research institute, but a commercial bank.

In case the bank if granted a license, it plans on storing bitcoin and other cryptocurrencies on behalf of its customers. Solarisbank currently has a full banking license in Germany, and has been offering its services to fintech startups.

As CryptoGlobe reported, the new German law could see the country become the next crypto haven, as it will allow banks to sell and custody cryptocurrencies. The cryptocurrency industry in the country, at the time, showed it was ready to welcome the new law.

Featured image via Unsplash.