- Commerzbank AG has successfully obtained a crypto custody license, providing further evidence that European banks are adopting a more positive stance towards the asset class.
- The move comes during the recovery of Bitcoin prices following a decline last year that occurred after a series of prominent businesses collapsed.
- The license will enable the bank to create a broad range of digital asset services, with a particular emphasis on crypto assets.
Germany’s second-largest bank announced today that it has obtained a license to offer crypto custody services: Here are the details!
German Banking Giant to Offer Crypto Services
Commerzbank AG, the second-largest bank in Germany, has successfully obtained a crypto custody license, providing further evidence that European banks are adopting a more positive stance towards the asset class. The license will enable the bank to create a broad range of digital asset services, with a particular emphasis on crypto assets. This marks the bank as the “first full-service bank in Germany” to receive the license.
This move indicates that European banks are cautiously entering the crypto market after initially avoiding this asset class due to associated risks and potential money laundering concerns, especially as Bitcoin prices recover following a decline last year that occurred after a series of prominent businesses collapsed.
Other banks are making similar moves, stating that these reflect customer demands. In July, Societe Generale SA’s blockchain unit obtained the first license under France’s new crypto rules. Earlier this month, German cooperative bank DZ Bank AG announced the launch of a platform for storing digital assets.
Requirements for Crypto in Germany
In contrast to other European countries, Germany requires banks to obtain an official expansion of their existing licenses if they want to offer crypto services, especially custody services. This requirement encourages transparency in the country’s crypto applications to European banking regulators.
The European Central Bank is still concerned that banks could escape supervision of their crypto activities, and on Tuesday, the top supervisor called for closing a legal loophole in regulations.
