BaFin Includes Crypto Custody Business as Service in Banking Act
BaFin notified that crypto custody business has been included into the German Banking Act (KWG) as a new financial service. The law implementing the amendment directive to the fourth EU money laundering directive (Federal Law Gazette I of December 19, 2019, p. 2602) included the crypto custody business as a new financial service in KWG. Companies that want to provide these services require permission from BaFin when the law comes into effect on January 01, 2020. BaFin is providing information on the possibility of a non-binding expression of interest as well as on the binding notification of intent according to the German Banking Act.
Even before the law came into force, BaFin had already asked to express informal and non-binding expressions of interest from companies that conduct the crypto custody business and these companies were, therefore, subject to a license requirement on the basis of the new law. These companies are still encouraged to submit such expressions of interest. The voluntary expression of interest does not replace the formal notification of intent pursuant to "Section 64y KWG."
For a company that becomes a financial services institution as of January 01, 2020, the license for the operation of crypto custody business is provisionally granted if the company submits a complete license application by November 30, 2020 and if it notifies BaFin in writing by March 31, 2020 of the intent to submit a license application. A corresponding regulation exists for companies that require a license due to the extension of the term financial instrument in the sense of "§ 1 paragraph 11 KWG by crypto values on January 01, 2020."
Related Links (in German)
Keywords: Europe, Germany, Banking, Securities, Cryptocurrency, Crypto Custody Business, Financial Services, Money Laundering, German Banking Act, Fintech, BaFin
Previous Article
EBA Consults on Amended Technical Standards on Passport NotificationRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
