According to a local news report, the German financial regulator, Buffin has already received over 40 expressions of interest from German banks. These banks have applied for permission to operate crypto custody businesses in the country.

The new Money Laundering Act is helping the government to regulate the cryptocurrency business. At first, the act only allows banks to offer and keep traditional securities such as stocks and bonds. But now, the new law which was implemented at the beginning of the year, permits banks to offer their customers online banking cryptocurrencies, practically at the push of a button.

It is an undisputable fact that the importance of virtual currencies has grown significantly, with increased global market capitalization. However, one of the major challenges facing the industry is the anonymity involved in its trading. This put them at risk of being abused by criminals and terrorists.

According to the regulator, the previous business models were too low to identify customers, and that is the reason for their adjustment or discontinuation. They claim the new set of regulations increases consumer protection. Since this new law came into force on January 1, 2020, all crypto custody businesses are required to have a financial supervisory license before they can operate. It however provides for transition periods until the end of November this year, for companies that are already in the business.

Frank B. Schaffler, from the Free Democratic Party (FDP) expressed his excitement over the high number of expressions of interest from the banks. Schaffler stated that the market is growing faster than even what the Federal Ministry of Finance has predicted. However, he said this has both advantages and disadvantages.

According to Schaffler, the high demand for crypto custody licenses is an indication that businesses are increasingly adopting blockchain technology.

One of the maiden institutions to offer this crypto custody services is the Berlin Solariskbank. According to Michael Offermann, head of crypto banking at the institute, the new regulation is a good time to start practically. He added that, digital assets will fundamentally change the financial market. He said they expect strong growth in the market as soon as it becomes easier to purchase and hold cryptocurrencies.

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