On the heels of new Anti-Coin Laundering laws, several German banks are reported to exist seeking regulators' get-ahead to offer digital assets services.

Local newspaper Handelsblatt reported on Feb. 7 that Germany's Federal Financial Supervisory Authority (BaFin) is dealing with a pour of applications from twoscore banks seeking to become regulated cryptocurrency custodians.

Equally of Jan. 2022, new legislation has permitted banks to extend their offerings beyond traditional securities such as stocks and bonds to include cryptocurrencies, like Bitcoin (BTC), Ether (ETH) and XRP.

"Both a blessing and a curse"

As Handelsblatt notes, the new legislation gives those institutions that were already engaged in digital assets a transitional period lasting until November. 2022. All market place participants must even so annals their involvement with the regulator by the end of March at the latest.

The volume of applications has reportedly outstripped the Finance Ministry building's expectations. Frank Schäffler, a member of parliament for the Gratuitous Democratic Party, told reporters:

"The market is growing faster than the Federal Ministry building of Finance has predicted. This is a blessing and a curse. The high need […] shows that more and more than firms accept blockchain applied science, merely can also be seen to exist a result of the new legislation."

The new legislation covers the gamut of crypto assets — from cryptocurrencies to tokens — classifying them as digital representations of a value that do not take the status of legal tender.

Among the outset institutions to apply with BaFin is reportedly Berlin Solaris Bank, which has already established a crypto-focused concern. Michael Offermann, head of crypto banking at Solaris, told Hassenblatt:

"We have been dealing intensively with the topic of crypto custody for a year and a one-half. The new regulation in the new Coin Laundering Act is a good time to kickoff practically. Later on all, we are not a research institute, but a commercial depository financial institution."

"Crypto-heaven"

As reported, back in fall 2022 the proposed legislation was welcomed by some in the manufacture as existence a sure step towards transforming Frg into a "crypto-heaven."

By removing the need for banks to make recourse to external cryptocurrency custodians or dedicated subsidiaries, the final version of the bill was designed to streamline banks' cryptocurrency-related operations and facilitate ease of entry to the sector.

The Association of German language Banks — a major lobbying group representing over 200 financial institutions supporting the new legislation — argued at the fourth dimension that supervised banks have sufficient experience and risk mechanisms in identify to safeguard customer avails.

Earlier this calendar week, major digital asset financial services firm BitGo expanded its global attain by setting up two new regulated custodial entities in Europe, ane of which is located in Federal republic of germany.