A representative for Commerzbank revealed to local news media that the bank had submitted an application for the cryptocurrency license with BaFin at the beginning of the year, marking the first time a major German bank had done so.
An Application To Hold Cryptocurrency
In Germany, one of the nation’s top financial institutions has released a report stating that it applied for a national cryptocurrency license at the start of 2022, representing the first time a big financial institution has taken a step towards digital currencies in the nation.
On the 14th of April, a spokeswoman for Commerzbank verified the news to a local media source, Börsen-Zeitung, that the financial institution ” submitted an application for the cryptocurrency holding license in the Q1 of 2022.” The company would be permitted to offer crypto services as well as holding and protection for crypto-assets if the license is authorized.
In addition to serving more than 18 million individuals, Commerzbank also serves over 70,000 corporate clients, and the addition of digital currency service will apparently be targeted at the bank’s institutional client group. Several banks worldwide are also filing for license to offer cryptocurrency services to its users now that the industry is receiving widespread acceptance.
Cryptocurrency Regulation In Germany
Since the 1st of January, 2020, any company thst wished to offer crypto-based services in Germany must receive permit from the Federal Financial Supervisory Authority (BaFin). Currently, just four organizations have obtained clearance, but according to BaFin, the organization has received more than 25 submissions from enterprises intending to establish cryptocurrency custody operations.
The Coinbase Germany branch stands as the first firm to be granted a license by the government, which happened in June 2021. The Berlin-based fintech business, Upvest, was recently granted permission by the regulatory body to offer crypto services in March last year.
Commerzbank has been involved in blockchain initiatives since at least 2018, and in the following year, the bank participated in several of the first activities on a DLT (distributed ledger technology) secure lending platform alongside other big banks. Also, the company was involved in a collaboration in August last year to establish blockchain-based digital markets for current asset classes like real estate and art.
In 2021, Germany implemented a slew of changes and legislation, as well as encouraged the broader implementation of blockchain tech and cryptocurrencies to protect its citizens. The country had received cryptocurrency with open hands. Moreover, German citizens are similarly enthusiastic about the usage of cryptocurrency. According to the findings of a Kucoin research released in March, over 44% of German citizens are inspired to deal in crypto assets while 37% of them have been exchanging digital currencies for more than a year.