Euro Coin is a Rumor, but German banks will be allowed to trade Bitcoin as of 2020
Starting on November 5, the global cryptocurrency community is continually buzzing with rumors that the European Union (EU) is issuing Euro Coin. Specifically, the EU is said to be considering seeking to access cryptocurrencies, as well as prohibiting overly risky projects. However, this is just a rumor, and so far, the EU has shown a negative attitude towards this market. However, now it seems that things have gotten better. A revision of the Fourth Money Laundering Directive provides excellent relief for banks, according to new EU law on November 29.
New EU law: Banks can operate concerning Bitcoin
Previously, banking institutions were prohibited from offering virtual assets or storing them for their customers. But with the fourth Money Laundering Directive, expected to come into force in 2020 of the EU, the world will tell a different story.
In the new draft law, the requirement for separation, which still delayed in the first version, was deleted. However, the bill also stated that banks must not directly hodl Bitcoin and other cryptocurrencies. They must go through outside service providers to custody the property.
Accordingly, the new bill has been passed by the German Federal Parliament and is only waiting for the signing of 16 German governments. From next year, Germany banks will be able to offer its customers cryptocurrencies in addition to traditional financial instruments such as shares or securities in online banking.
Sven Hildebrandt, head of the consulting firm DLC, said:
“Germany is well on its way to crypto heaven. The German legislator is playing a pioneering role in the regulation of crypto custodians.”
Image: Sven Hildebrandt, head of the consulting firm DLC (on the right).
The draft law, which will soon be put into effect, will allow Germans to directly invest in cryptocurrencies through domestic funds, instead of having to transfer money overseas as currently. However, critics fear the bank may be frantically promoting cryptocurrencies.
Financial expert Niels Nauhauser explains:
“Banks sell a wide variety of financial products if the commission is right. If they are allowed to sell cryptocurrencies and store them for a fee, there is a risk that they will sell their customers assets with a total risk of loss without them knowing what they are getting into. ”
Bitcoin’s legal system is getting better and better
A draft EU law is expected to promote the adoption of cryptocurrencies. However, it will also not help increase the use of cryptocurrency in everyday life. The bill only brings Bitcoin closer to many large customers as a speculative tool, creating competition with stocks and securities.
Since 2013, Bitcoin has recorded a higher return than the S&P500 stock index. However, we must consider the impact of Bitcoin and the development of the market.
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