At the moment, any financial institutions offering its services in Germany are barred from selling any cryptocurrencies to their clients. A German news outlet, Handelsblatt, reported that under the new law that implements the fourth EU Money Laundering Directive, banking institutions will be able to offer digital assets to their clients. The bill has already been approved by Germany’s federal parliament Bundestag and now it awaits the approval of all 16 states.
At the moment it is very possible that next year, banks in Germany will be able to offer their clients crypto-related investment products alongside traditional securities like bonds and stocks. Furthermore, clients of German banks will be able to hold their cryptocurrency at the bank, which will be accessible with the ” touch of a button”.
The new regulation will allow banks to provide cryptocurrency transactions without the need for external custodians or special licenses. The news was welcomed by the Association of German Banks too. It stated that the experience of financial institutions in dealing with client assets and risk management is will minimize risks of money laundering.
Germany’s crypto community is very supportive of the Government’s initiative. The head of the consulting firm DLC, Sven Hildebrandtsaid, said
“Germany is well on its way to becoming a crypto-heaven. The German legislator is playing a pioneering role in the regulation of crypto-truths. “
However, some experts are not so optimistic and are worried about aggressive selling tactics that banks may adopt to push cryptocurrency to their clients. One of the financial experts, Niels Nauhauser of Baden-Wuerttemberg, has already expressed his concerns.
“Basically, banks sell a variety of financial products if the commission is right. If they are allowed to sell cryptocurrencies and keep them for a fee, they run the risk of returning a total loss to their clients, without them knowing what they are getting into,”
Furthermore, Fabio De Masi, a financial advisor of Germany’s the Left Party, said,
“Banks are hot on profits from crypto businesses. However, the financial consumer protection must not be undermined.”
Image source: Flickr
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