German Banks Will Soon Be Allowed to Sell Crypto
Over the last couple of years, Germany has shown a fairly-friendly attitude towards cryptocurrencies and blockchain technology. This only makes sense given the fact that Germany is the economic powerhouse of Europe, and therefore has little to no financial stress.
According to recent reports, German banks might soon be allowed to sell cryptocurrencies, but also to offer custody services to their customers. This development comes following a new financial law meant to implement the 4th Money Laundering Directive of the European Union. So far, the legislative bill has been approved in the nation’s Federal Parliament, and is awaiting final legal sanctioning by the 16 lands. The new law is bound to go into effect next year.
Until now, German banks and other financial institution were barred from being able to sell cryptocurrency to users. Subsequently, they were also forbidden to offer custody services, and therefore, banks with an appeal for crypto had to rely on subsidiaries or third party custodians.
The new law will further stimulate the cryptocurrency market in Germany, granted that investors will now be able to pool their money into German funds. Similarly, crypto investment rates may also increase, given the fact that both institutional and private investors may trust bank services more, given the extensive legislative framework offering consumer protection.
Despite this aspect, it is important to keep in mind that banks cannot guarantee for digital currency volatility. Therefore, they must ensure that crypto-related customers are well-aware of the afferent risks associated with investing in bitcoin and other cryptocurrencies.
According to some members of the German cryptocurrency community, the nation may soon become a safe-haven for crypto and blockchain investors, thanks to the friendly crypto-related regulatory framework.