German media: Germany is entering a "cryptocurrency paradise", new bill allows banks to sell cryptocurrencies such as Bitcoin

Cryptocurrencies may eventually go hand in hand with traditional currency services. Local media reports that from 2020, it may be legal for German banks to sell cryptocurrencies such as Bitcoin and provide escrow solutions.

berlin-1836822_1280

Image credit: Pixabay

Germany welcomes cryptocurrency with open arms

Currently, financial institutions operating in Germany are not allowed to sell cryptocurrencies directly to their customers. However, this situation may change in the future as the fourth EU money laundering directive is being planned. The bill has been passed in the Bundestag and is now awaiting consensus in 16 German states.

The final version of the bill is beyond the scope of money laundering and previous plans, as it proposes to allow regulated banking institutions to provide cryptocurrency services without relying on currently required third-party custodians and special subsidiaries.

The German cryptocurrency community is happy with the new version of the bill. Sven Hildebrandt, head of consulting firm Distributed Ledger Consulting (DLC), said:

" Germany is on its way to a cryptocurrency paradise. German lawmakers are playing a pioneering role in regulating cryptocurrencies. "

If the German states approve the proposal, German citizens will be able to hold Bitcoin, Ethereum and other digital currencies directly in the bank. In addition, banks will provide online banking solutions for all assets including stocks, bonds and cryptocurrencies. This means that cryptocurrency holders can access their funds with the click of a button.

Interestingly, the German Banking Association (BdB) also welcomes this new regulation. It believes that lenders are experienced in storing customer assets and risk management. The new law may block cryptocurrency-related money laundering and allow German investors to enter the cryptocurrency space through domestic funds.

German consumer experts express concern

However, not everyone is satisfied with the proposed bill. The Consumer Center in Baden-Wurttemberg, Germany, is worried that banks will use new products for more aggressive marketing activities. Financial expert Niels Nauhauser said that German banks are now targeting new customers in various ways and they may not be able to inform customers about the potential risks of investing in cryptocurrencies.

Fabio De Masi, a German left-wing financial commentator, warned that while banks want to profit from cryptocurrencies, they must not undermine the protection of financial consumers.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Is CoinDesk selling at a loss with a valuation of $125 million after being in business for ten years?

On the occasion of its tenth anniversary and after being held by DCG Group for eight years, CoinDesk, the cryptocurre...

Blockchain

Hacker's "honeypot": the exchange has been stolen 1.36 billion US dollars, accounting for 59.2% in 2018 alone

Bitrue, a Singapore-based cryptocurrency exchange, today announced a hacking attack that cost $4.3 million worth of X...

Blockchain

Babbitt column | Case study: Exchange "downtime", does the holder lose any compensation?

Source of this article: Xiao Sa Author: Tan Hao Guo Xiao Sa The currency circle trading platform advertises that &quo...

Blockchain

Thousands of exchange platform license thresholds reach the cloud or 5 platforms enter the Hong Kong Securities Regulatory Commission's sandbox

Source: 21st Century Business Herald Author: Zhou scorching The confrontation between the United States and Iran has ...

Blockchain

Unveiling SBF's Defense Draft of up to 250 Pages I Did What I Believe Was Right

SBF traced his development journey, from his childhood in Palo Alto to the top floor apartment he purchased near the ...

Policy

Jurors buckle up as Sam Bankman-Fried's criminal trial takes off with riveting jury directions

SBF faces seven charges of financial fraud in connection with FTX's downfall in November.