The new legislation has been made in Germany to enable banks to sell and store cryptocurrencies from January 1, 2020. This legislation required previous custody providers and crypto Traders operating in the German market to take concrete steps before 2019 ended.
According to 10CFDS, the concrete steps taken by the custody providers and crypto exchangers required them to opt for a German license. Hence, banks can legitimately sell and store cryptocurrencies. This bill has done much in not only putting Germany as one of the leaders of the cryptocurrencies regulation but also advocate the adoption of cryptocurrencies by all and sundry.
10CFDS says, “Though Germany is already the world’s biggest economy, this bill places the country on better pedestals in crypto regulations.” As Germany becomes a renowned voice in the global crypto market, institutional investors would troop into the country as a result of the guaranteed security and regulation on their investments.
Germany is strategically positioned to become the world’s crypto-heaven. “The bill was passed into law by the Bundestag, the lower house of the German Parliament sometime last year and was later approved by the upper house, the Bundesrat.”
What is The Change?
As from January 1 2020, banks became legal in selling and storing of cryptocurrencies, the same way they trade in stocks, bonds for both institutional investors and retail merchants. According to 10CFDS, this is an excellent amendment to a clause in the European Union’s Fourth Anti-Money Laundering Directive which restricts banks from dealing in cryptocurrencies directly.
10CFDS says, “As a result of this bill, for exchanges such as Binance, Kraken, and other digital asset custodians to continue to operate in Germany, they will have to obtain a license from Bafin, a German regulator.”
To obtain this license, the concerned parties will need a German legal entity with two directors that are operating in the country. Similarly, they need to showcase their intention through an application to Bafin for a license on or before March 31, 2020, and complete the application submission before November 31 2020.
10CFDS says, “Digital asset custodians who failed to establish a legal identity in Germany before the end of 2019 were deemed illegal by January 2 2020.” The options are clear and straightforward- companies are to set up a German company, apply for the license, and work with a cryptocurrency custodian who is licensed in Germany or work with a licensed provider.
Germany is already at the forefront of driving the adoption of crypto-currencies, and the country is ready to play the leading role in Europe.