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Germany’s banking giant Commerzbank applies for a crypto license 

Updated: Jul 25, 2024
Published: Apr 21, 2022
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Germany’s banking giant, Commerzbank, has confirmed that it is formally entering the digital asset world and has already applied for a local crypto license earlier in 2022.

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Commerzbank seeks regulatory approval 

As per a report by Börsen-Zeitung, a local media outlet, Commerzbank has become the first major bank in the country to enter the crypto market by applying for a crypto custody license earlier this year. If approved, the grant would enable the company to provide exchange services as well as crypto-asset custody and protection.

Notably, as per the new guidelines by the Federal Financial Supervisory Authority (BaFin) in Germany, any business which seeks to offer crypto services in the country must obtain a license from the regulatory body. Only four companies have received approval so yet, but BaFin says it has over 25 applications pending from companies interested in operating crypto custody operations.

Commerzbank, which serves more than 18 million customers and has 70,000 institutional clients, aims to target its institutional client base via crypto offering. The banking institution began working on blockchain projects in 2018, and soon completed transactions on a distributed ledger technology with other big banks.

Germany: The most crypto-friendly nation

The crypto adoption in Germany has been a bit slow in the past year but is currently gaining pace after a slight regulatory clearance. A recent report by Coincub reveals that Germany, which ranked fourth last year, has dethroned Singapore to become the most crypto-friendly country in the world. In January, the crypto exchange BitMEX shared its plans to acquire the famous German bank, Bankhaus von der Heydt.

Europe is still lacking a clear set of regulations for the digital asset industry. In February, EU parliamentarians said they want to ban energy-intensive cryptocurrencies like Bitcoin. However, the proposal was dropped after an intense discussion and voting by the Committee on Economic and Monetary Affairs.

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