German Banks Authorized for Crypto Custody and Sales in 2020By Dec 02, 2019 1 Min Read
From Jan. 1, 2020, German banks will be legislatively authorized to sell and provide custody of cryptocurrencies as reported by German newspaper Handelsblatt.
German Parliament passed the new law on Nov.29, amending the fourth EU Money Laundering Directive. The bill was altered for the final version to allow financial institutions to act as custodians, conditional to procuring the relevant license. Previous iterations of the bill required banks to store cryptocurrencies with third-party custodians—as the change occurred late in the bills passing, the deadline for financial institutions has also been extended.
Sven Hildebrandt, a partner at Hamberg-based Distributed Ledger Consulting, praised German legislators for their foresight and initiative. He told Handelsblatt, “The German legislator is playing a pioneering role in the regulation of crypto storage."
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