Germany’s crypto law will now allow banks to store and sell crypto assets in 2020, strengthening the nation’s position as a pro-crypto country.
Germany’s crypto law allows banks to offer crypto custody
German business newspaper Handelsblatt reported that financial institutions in the country would soon be able to provide crypto custody services as well as sell digital assets. German federal parliament has passed a new law that is expected to be implemented in 2020 across 16 German states. The fourth EU Money Laundering Directive would reinforce the nation’s position as one of the forerunners in blockchain adoption.
Up till now, only a few selected banks have facilitated crypto-related services. In 2020 things are likely to change as the nation’s administration seems to be keen to adopt crypto assets. By allowing banks to offer digital asset services, digital assets would become accessible to a mainstream audience across the nation.
Germany’s crypto law would enable financial institutions to sell Bitcoin as well as offer crypto custody services allowing users to purchase crypto with a click of a button. Blockchain experts in the country are appreciative of the bill with Dr Sven Hildebrandt claiming that the nation would become a “crypto-heaven” in the future. He stated that the legislators are taking a lead role in driving crypto regulation.
The Association of German Banks also welcomed the new law saying that credit institutions are experts in risk management and can ensure customer safety. They fall under the jurisdiction of financial regulators and can prevent money laundering. Banks are experienced in custody of client assets and hence can manage crypto storages efficiently.