German Banks Take an Interest in Cryptocurrency

News 12 February 2020 Cointral
German Banks Take an Interest in Cryptocurrency

In Germany, more than 40 financial institutions applied to the financial regulator in the country and stated that they wanted to provide cryptocurrency services. Everyone is wondering why so many requests are made to apply to BaFin, the country’s financial regulator.

The biggest factor in the realization of these developments is related to a law that came into force in 2020. In the content of the law, a comprehensive definition has been made about the assets that financial institutions and banks can serve. This causes cryptocurrencies and other types of assets to be defined as assets that can be served banks.

Cryptocurrencies Gain Importance in Germany!

According to the aforementioned development, banks will be able to activate cryptocurrency storage and many services when they obtain the necessary permit from the financial regulator in the country. According to the statements made by the spokesperson of the BaFin on the subject, the application process has not yet been approved and that they strictly carry out the evaluation process.

In the past, there were banks in Germany that offered cryptocurrency to their users before the law. Berlin-based fintech company Solarisbank became the first financial institution to implement cryptocurrency services in the German capital. Solarisbank, which brought cryptocurrency storage services together with its users in December 2019, has led the way.

There was a circumstance that upset the balances in the past days. The separation of Britain from the European Union with Brexit had a great impact on Europe. However, this move of Britain, previously serving as the center for the crypto money sector, caused a huge gap in the region.

Germany, wanting to turn this crisis into an opportunity, may become central to Europe operations with the new regulation. There is a great interest in cryptocurrencies and blockchain systems not only in Europe but in every region of the world and it increases day by day. As we have reported in the past days, Japan is trying to respond quickly with China’s Digital Yuan. If you want to read the related news, you can take a look at “Japanese Official Instructs Digital Yen Studies“.

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