- Banks in the EU get an early Christmas gift as the new law will enable them to buy, hold and sell cryptocurrencies.
- Germany steps at the forefront to lead the implantation my drafting other supporting laws.
A new proposed bill on the European Union fourth Money Laundering Directive will allow banks to buy, hold and sell Bitcoin. The amendment on the directive comes to ease stringent rules that prohibited banks from either offering virtual asses or providing custody services. The move is an excellent relief for financial institutions in the region.
Taking advantage of the new bill is the German Bundestag, which has come up with a separate law to implement the move. Although the bill requires further development, it is expected to come into effect in 2020. Commenting on German’s swift reaction to implement the new bill, Sven Hildebrandt, the head of consulting company DLC said:
Germany is well on its way to crypto heaven. The German legislator is playing a pioneering role in the regulation of crypto custodians.
While the move has been welcomed across the board, some people, such as financial expert Niels Nauhause warned of banks aggressively advertising the digital assets without educating on the associated risks.
“Basically, banks sell a wide variety of financial products if the commission is right. If they are allowed to sell cryptocurrencies and store them for a fee, there is a risk that they will sell their customers assets with a total risk of loss without them knowing what they are getting into.”
Another expert economist Fabio de Masi cautions that although banks are finally getting what they have been longing for, providing people with information regarding the risks associated with cryptocurrencies must be taken seriously as well.
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