40 banks in Germany have been licensed to provide cryptocurrency services
According to The Fifth European Money Laundering directive, effective January 1, 2020, banks are allowed to treat Bitcoin and Ethereum as stocks or bonds. Therefore, banks can provide similar services for these types of assets. As such, 40 banks in Germany have been licensed to provide depository services and cryptocurrency trading services.
40 banks in Germany are entitled to provide services related to Bitcoin and cryptocurrency
This also applies to tokens because of the broad definition of cryptocurrencies. Because tokens, as well as digital currencies, are digital representations of values not issued or guaranteed by a central bank or public authority, not necessarily tied to a legally established currency and has no legal status in money or money but is accepted by natural persons or legal entities as a medium of exchange and may be transferred, stored and electronically traded.
This means that banks can now provide buying and selling services, as well as storing Bitcoin, Ethereum, or other cryptocurrencies just like they do with stocks and other assets.
The high demand for cryptocurrency depository licenses indicates that companies are increasingly adopting Blockchain technology, but are also a result of the new law. Besides, Brexit also has the potential to bring new financial services to London, and that is cryptocurrency services.
Michael Offermann, head of the cryptocurrency bank at Solarisbank, said:
“We have been working very hard on the subject of cryptocurrency custody for a year and a half. The new regulation in the Money Laundering Act is a good time to start.” After all, we are not a research institute that is a commercial bank. Several private banks provide cryptocurrency services that target mostly the rich, but we don’t know any mainstream banks that do so.”
Berlin can be described as the hacking capital of the world
Europe’s largest economy, Germany, is in a perfect position to take advantage of the financial revolution and cryptocurrency technology. That’s because Berlin can be described as the world’s hacking capital to Germany by itself, having nearly as many nodes as the entire United States.
Financial center in Frankfurt
That can be explained by Berlin, in particular, becoming a haven for Western dissidents and especially dissident programmers, as it is a Western liberal nation very sensitive to the privacy and generally outside the scope of US power. So they have the skills, and with London, they can have a more significant role in Euro trading, making it a Fintech hot spot.
Besides, Germany is still a significant industrial producer. One of their largest energy companies was one of the first to support Ethereum.
The only downside is the lack of an English-speaking language. English is almost the native language of many people, especially in business and technology.
Combining these three factors – the crypto hotspot, the financial center in Frankfurt, and an industrial powerhouse along with cryptocurrencies, Blockchain, you have a genuine potential competitor to limit the SEC.
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