Commerzbank makes history as the first “full-service” German bank to obtain a crypto custody license under the German Banking Act.
German financial company Commerzbank has obtained a crypto custody licence from regional authorities. As a result, Commerzbank is now recognised by law as the first “full-service” German bank to have this kind of licence under the German Banking Act.
The Commerzbank Traditional and Digital Assets Plan
Commerzbank is now able to offer a variety of digital asset services, including custody services for cryptocurrency assets, thanks to the licence. Commerzbank’s Chief Operating Officer, Jörg Oliveri del Castillo-Schulz, said it highlights the bank’s eagerness to adopt cutting-edge technologies.
Commerzbank aims to provide a safe environment that conforms with regional laws and uses blockchain technology to provide institutional customers with cryptocurrency custody services. Commerzbank wants to offer its customers services that include both traditional and digital financial assets as the Bitcoin market becomes more widely accepted.
BaFin Accelerates Crypto Custody Service Licence Application Process
BaFin, the German financial market regulator, plans to quicken the pace at which it is currently granting licences for cryptocurrency custody services. This effort was unveiled by BaFin President Mark Branson at the Handelsblatt Banking Summit in Frankfurt. He emphasised the programme’s importance in restoring investor confidence in the face of increasing volatility and scepticism in the cryptocurrency markets.
The BaFin’s new licencing policy, which is a reaction to the changing crypto ecosystem, has significant ramifications for cryptocurrency custody providers. The regulatory authority has seen a spike in the number of applications for crypto custody licences; in the first eight months of 2023, compared to the full year prior, twice as many applications were completed.
Branson underlined how crucial the assessment procedure is. Only businesses with a strong business plan, sufficient startup funding, and dependable management are allowed to participate in the cryptocurrency market, according to the regulator.
Moreover Branson’s comments highlight BaFin’s understanding of the advantages and disadvantages of the cryptocurrency industry. He underlined the need for careful examination in this field.
BaFin’s dedication to regulation is not without difficulties, though. The regulatory agency rejected Binance’s application for a licence in Germany, adding to the growing anti-Binance attitude. Due to legal troubles in the US, Binance had to leave the Netherlands and Cyprus due to regulatory concerns in Europe.
