Commerzbank applies for a cryptocurrency license in Germany
As the cryptocurrency sector expands throughout the world and across industries, financial institutions are seeing an increase in client demand for regulated cryptocurrency-related services and investments. Germany’s Commerzbank is one bank that has taken the initial steps toward implementing digital asset services.
Commerzbank, one of Germany’s top financial institutions, has applied for a cryptocurrency trading license. By the way, this is the first time a major German bank has taken such a move. Commerzbank applied for it at the beginning of 2022, according to the local daily Borsen-Zeitung. If the application is accepted, the bank will be allowed to offer cryptocurrency services such as trading, storage, and insurance services. The German Federal Financial Supervision Agency (BaFin) mandated cryptocurrency company licensing in January 2020. Indeed, Germany has enacted a new regulation on January 1, 2020, encouraging German banks to provide crypto services.
Remark: Commerzbank is Germany’s second-largest publicly traded bank and is partially controlled by the government.
Cryptocurrency in Germany
In order to transact in the cryptocurrency market in Germany, companies and banks must register with BaFin, according to current German regulations. For now, only four organizations were granted the necessary permits. Commerzbank has been interested in blockchain technology and cryptocurrencies for a long time. In 2018, the company experimented with transactions using the Corda platform. Curv, a cryptocurrency storage infrastructure provider, received investment from Commerzbank in 2020.
Commerzbank now serves 18 million consumers and over 70,000 institutional clients. Furthermore, cryptocurrency services will be tailored specifically to the second group of clients. Previously, it was reported that BaFin is considering more than 25 applications for cryptocurrency licenses.
Cryptocurrency all over the world
Banks all over the world are expanding their services to include cryptocurrency. One of them, according to Coinphony, is the financial giant Goldman Sachs, which wants to introduce crypto services for its elite clientele in the second quarter of 2022. Furthermore, Blythe Masters of Credit Suisse, a member of the board of directors and a financial technology specialist, stated that Bitcoin poses no danger to fiat currency or the banking industry as a whole. On the other hand, some cryptocurrency specialists predict that cryptocurrencies will replace some financial services.
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Valentyna Bereza, Team bit4you.