A new law in Germany is expected to drive crypto adoption in the country, as the government seeks to improve the sector’s growth. The legislation recently passed in Bundestag, Germany’s parliament will give regular banks the power to offer cryptocurrency custody for holders, removing the need for digital currency exchanges for custodial offerings.
When the law goes into effect next year, banks will be able to act as exchanges, allows users to buy, sell and store cryptocurrencies. Coingecko co-founder Bobby Ong has praised the development, suggesting that it is fertile ground that will yield fruit.
“Just like how banks sell gold, stocks, unit trusts, and insurance directly to retail consumers now, I see no reason why banks will not offer cryptocurrencies for sale now. What’s taking these bankers so long? It’s a big gold mine waiting to be tapped.”
In addition, the new law will also allow investors to get into several funds as available in the country, instead of looking to take their investments elsewhere.
German banking association Bundesverband deutscher Banken (BdB), has also praised the new law. According to the association, these institutions already have considerable experience with investments, safety of funds and risk management as well. The high level of financial supervision according to the BdB, would make the new offering a walk in the park for them.
Germany’s second-biggest stock exchange platform recently launched the Boerse Stuttgart Digital Exchange (BSDEX), a fully authorized and decentralized platform for trading digital currencies.
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