German authorities responded to the fifth EU Directive on countering money laundering and allowed regulated financial institutions to interact with cryptocurrencies.
The definition States that these include “any digital representation of value that is not issued by a Central Bank or government authority.” Digital assets do not have to be legally recognized, as long as they are accepted by individuals and legal entities as a means of payment that can be transferred, stored or converted in electronic form.
“We are seeing a great demand for crypto-custodial licenses. This indicates the desire of companies to work with the blockchain, including due to the adoption of new legislation,” said Frank Schäffler, a member of the Bundestag.
According to the information portal Handelsblatt, more than 40 banks have already told the Federal financial supervision authority of Germany (BaFin) about their intentions to start a crypto-custodial business in the future.
The applicants include Solarisbank, a German FINTECH company with a banking license, which, after permission from the authorities, opened a division of Solaris Digital Assets to store bitcoins and other cryptocurrencies.
“We have been actively developing this area for a year and a half. We have received a great signal that it is time to start practical actions. After all, we are a commercial Bank and should provide appropriate services, not engage in research work,- said the head of crypto-banking Solarisbank Michael Offermann (Michael Offermann). – Digital assets have characteristics that can change financial markets. After implementing the necessary infrastructure that allows you to buy and store bitcoin simply and clearly, we expect to see a big growth.”