- German banks may be allowed to offer cryptocurrency-related services through a new draft law in the Bundestag
- Previously, banks could only use 3rd-party services for crypto-related investments
A new draft law being considered by the German parliament the Bundestag allows banks to deal in cryptocurrencies including Bitcoin. If eventually passed, it will allow German banks across the country to offer Bitcoin-related financial instruments and services.
Currently, the banks in Germany and other countries of the EU block have considerable hurdles in providing cryptocurrency-related services because of recent Anti Money Laundering (AML) initiatives by the EU parliament to curb terrorism financing and other security-related concerns.
According to the old law, banks were only able to use 3rd-party services to ensure Bitcoin-related services and financial investments to avoid a clash with conventional money systems. The new draft law deletes this requirement and will potentially allow banks to hold Bitcoin and offer its related financial products to their customers. With the law eventually passed, German citizens and eventually EU residents will be given new opportunities to invest in cryptocurrencies, the likes of which are currently banned in the economic union.
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