Good news for members of the digital asset community. According to cybersecurity specialists, Germany’s parliament has just passed a law allowing banking institutions to sell and store cryptocurrencies starting in 2020.
This law will come into force in January next year, and requires both custodial providers and cryptocurrency platforms operating on German lands to take some steps to apply for a license that allows them to comply with this law. It should be remembered that Germany is the fourth largest economy in the world, so this measure could provide a considerable boost to the use of virtual assets.
For this it was necessary to modify an anti-money laundering clause in the European Union that prohibits banking institutions from trading directly with cryptocurrency, mention cybersecurity experts. In addition, exchange platforms such as Binance and Kraken, operating in Germany, must obtain a permit from the Federal Financial Supervisory Authority (BAFIN).
In addition, companies that wish to continue operating must set up a legal German company before the end of the year.
Platforms that custody digital assets that have not established a legal identity in Germany before December 31, 2019, will be considered illegal once the law takes effect. According to Sven Hildebrandt, a cryptocurrency financial consultant, this measure leaves only three possible paths for exchange platforms:
- Establish a German company before the end of the year to apply for a license
- Work with a cryptocurrency custodian licensed to operate in Germany
- Work with a licensing provider, which is more complex but equally functional
Some platforms, such as Crypto Storage, have already taken up the issue, mentioning that they will soon open an office in Germany. Cybersecurity experts believe this can be a major breakthrough for the cryptocurrency community, as they expect Germany to be the first of many other countries to show confidence in the use of these assets, in addition to the institutional support that institutional support could further boost the security of the cryptocurrency.
According to specialists from the International Institute of Cyber Security (IICS), in addition to the use that some cybercrminals make of these assets, cryptocurrencies can also be used for the security of users, so these kinds of measures must welcome by banking institutions.