A group of German banks asks the authorities to allow their clients to offer the digital asset protection service. Banks say they want to consider these crypto-assets as financial assets.
Technology is changing how financial activities are being conducted at present, and among the most prominent ones is crypto technology.
In 2019, it was known that the New York Stock Exchange would be accepting digital assets through projects with crypto initiatives, but this 2020 the actions of financial institutions are going much further. For this reason, it was recently announced that a group of German banks has decided to introduce the formal request to the legal authorities of their country to offer a crypto-asset protection service to their clients.
The Revelator Report of BaFin
The news was first released through statements by German government officials, who explained that they have received constant requests from banks and financial institutions which seek permission to launch a custody project for digital assets.
On the other hand, it was also revealed that the country’s financial regulatory authority, BaFin, would have prepared a report confirming the more than 40 requests to offer these services.
As reported by the local media Handelsblatt, the boom in offering these services may be the product of the reform that the Law against Money Laundering had.
The laws update states that financial institutions would now be allowed to offer securities management services, and asset and bond safekeeping. This includes digital assets such as traditional cryptocurrencies: Ether (ETH), Bitcoin (BTC) and XRP.
The news about the reform benefits the crypto industry in the European country and puts extra confidence in the use of these types of assets.
Regarding this growth in interest in the use of these types of assets, Frank Schäffler argued this position by declaring for the same media that reviewed the news.
“The market is growing faster than the Federal Ministry of Finance has predicted. That is both a blessing and a curse. The high demand for crypto custody licenses shows that companies are increasingly adopting blockchain technology, and this is also the result of the new legislation”, he explained.
In response to the requests introduced by German banks, the BaFin set a deadline, November 2020, so that the institutions that want to provide this service can adapt the necessary platforms to store crypto assets, as well as correctly and safely organize the appropriate standards to offer other services that are related to these assets.
The change in the regulation of the country could be the product of the recognition that was granted by the European Union (EU) to companies that use cryptocurrencies for their businesses. Although it turns out to be a small step for the industry, it is still important to highlight the adoption they have achieved within the traditional financial world.
This is something very important both for blockchain technology and for cryptocurrencies expansion in different fields, countries, and industries all around the world.
By María Rodríguez