The banking institutions in Germany will be able to manage and store cryptocurrencies for customers from 2020. German Government has newly enacted legislation over it that allows banks in Germany to receive and sell digital assets like bitcoin cash and Ethereum. European Parliament has issued an amended regulatory Directive 2015/849 regarding the flow of cryptocurrencies in the banking sector.
German banks will be able to offer cryptocurrency solutions along with traditional stocks, bonds, and equity by the starting of 2020. The banks in Germany are required to get a license to offer the digital asset to the customers and there is a deadline to accept applications for the license.
This initiative by the European Parliament would put Germany ahead of the game to become crypto haven. The German legislator is playing an important role in the regulation of cryptocurrencies in banks.
German banking association, Bundesverband Deutscher Banken (BDB), has welcomed the new regulation regarding cryptocurrency operation in the banks. According to BDB, credit institutions are experienced to keep the customers’ assets safe through risk management.
The banks are committed to investors’ protection and they are controlled by financial supervision. The new directive will allow the German people to invest in digital assets domestically rather than searching for foreign funds.
Cryptocurrencies are gaining massive attention from the investors since the last two to three years. They are gaining strong projections and the people are investing them in large numbers.