Commerzbank, a German financial institution, has secured a
crypto custody license from local regulators. This positions Commerzbank as the
first “full-service” German bank to be granted such a license under
the legal framework of the German Banking Act.
The license allows Commerzbank to provide custody services
for crypto assets, a capability to offer a range of digital asset services.
Jörg Oliveri del Castillo-Schulz, the Chief Operating Officer of Commerzbank,
stated that it underscores the bank’s keenness to embrace the latest
technologies
Jörg Oliveri del Castillo-Schulz, COO,Commerzbank, Source: LinkedIn
Commerzbank seeks to establish a secure platform that
complies with local regulations and to leverage blockchain technology to offer
crypto custody services to its institutional clients. As the cryptocurrency
market gains mainstream acceptance, Commerzbank aims to provide its clientele
with services encompassing traditional and digital financial assets.
BaFin Expedites Licensing Approach for Crypto Custody
Services
Germany’s financial market regulator, BaFin, is set to
accelerate its current approach to licensing crypto custody services. BaFin
President Mark Branson announced this initiative during the Handelsblatt
Banking Summit in Frankfurt, highlighting its significance in instilling
confidence among investors amid growing volatility and skepticism in the crypto
markets.
The new licensing strategy by BaFin has notable implications
for crypto custody providers, signaling a move in response to the crypto
landscape. The regulatory body has observed a surge in application processes
for crypto custody licenses, completing twice as many in the first eight months
of 2023 compared to the entire previous year.
Branson emphasized the importance of the evaluation process.
The regulator aims to ensure that only companies with a viable business model,
ample start-up capital, and reliable management staff receive permission to
operate in the crypto market.
Branson’s remarks underscore BaFin’s recognition of both the
risks and rewards associated with the crypto market. He emphasized the
necessity for thorough scrutiny in this sector.
However, BaFin’s commitment to regulation does not come
without challenges. The regulatory body has recently joined the anti-Binance
sentiment, rejecting the company’s license application in Germany. Binance has
been facing regulatory issues in Europe, exiting Cyprus and the Netherlands amid
legal challenges in the…
