Deutsche Bank applied for a cryptocurrency license
Deutsche Bank has applied for a cryptocurrency license from the German regulator
The bank plans to increase fee income through new services and product offerings related to digital assets
Deutsche Bank has applied to Germany's Federal Financial Supervisory Authority (BaFin) for a license to provide digital asset services, Bloomberg writes.
"We are growing our digital asset and custody business. We just applied to Bafin for a digital asset license," David Lynn, Deutsche Bank's head of corporate banking, said at a conference on June 20.
Lynn said the move is a reflection of efforts by Deutsche Bank's investment arm, DWS Group, to increase revenue from digital asset products.
According to the cryptocurrency market analyst, Deutsche Bank can hardly be called a cryptocurrency-friendly bank, but its customers could buy cryptocurrencies using their bank accounts or cards from appropriately licensed European crypto companies.
The EU has adopted uniform regulation of cryptocurrencies for all countries
According to him, the bank itself did not provide cryptocurrency services due to the lack of legislation, and companies offering crypto services in Germany opened accounts with other organizations (such as Solaris Bank) for their activities.
The cryptocurrency storage service launched by Deutsche Bank is the easiest in terms of IT and regulation, Pershikov explained. This is made possible by the adoption of Markets in Crypto-Assets (MiCA) regulations, which opens up many financial institutions in the EU to provide crypto services, the analyst said.
The Council of Europe announced the adoption of new legal rules for the digital asset industry in the EU MiCA in mid-May. The rules oblige crypto platforms, such as exchanges and custodians (asset custodians), to be mandatorily registered in one of the bloc's member countries.