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
BoE Seeks Information Before Migrating Statistical Reporting to BEEDS
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
FCA Publishes Final Rules on Investment Firms Prudential Regime
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
CFRF Publishes Guides to Manage Financial Risks from Climate Change
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
PRA Finalizes Policy for Non-Performing Exposure Securitizations
The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
EU to Explore Potential of Establishing a Joint Cyber Unit
The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.
EC Sets Out Work Program for 2022
The European Commission (EC) adopted the work program for 2022.
