With parliament approval, German banks to sell and custody crypto in 2020
German banks will quickly be in a position to sell and safe-keep cryptocurrencies beneath a brand new regulation, in accordance to a record by means of German newspaper Handelsblatt.
Effective Jan. 1, 2020, the brand new law used to be handed by means of the German parliament on Nov. 29 as an modification to the fourth EU Money Laundering Directive. According to the record, the invoice firstly required banks to retailer cryptocurrencies with third-party custodians. However, beneath the general model of the regulation, monetary establishments can custody cryptocurrencies themselves after buying correct licenses, and the cut-off date to observe for such licenses may be prolonged, according to the record.
Sven Hildebrandt, a spouse at Hamberg-based Distributed Ledger Consulting, praised the brand new regulation as a step for Germany “to becoming a crypto-heaven.”
“The German legislator is playing a pioneering role in the regulation of crypto storage,” Hildebrandt informed Handelsblatt.
Some German trade professionals are excited about client coverage beneath the brand new regulation. Handelsblatt cited monetary professional Niels Nauhauser’s worries that customers could also be allured by means of banks to make investments in cryptocurrencies with out figuring out their dangers and because of this dropping their investments.
“So far, distribution was only possible for the banks through special bonds. Here, they had to inform their customers in advance about costs and key investor information. This is not the case in direct sales of bitcoin and co,” Nauhauser informed Handelsblatt.