The German regulator called the interest of banks in cryptocurrencies “limited”

The German regulator called the interest of banks in cryptocurrencies “limited”

The interest of German banks in the offer of cryptocurrency trading for customers looks limited, since the institutions received only four licenses for storing digital assets in BAFIN. This was stated by the president of the department Mark Branson.

Fourteen financial institutions, including Commerzbank, have a temporary permit for the provision of castodial services for Venture investor cryptocurrencies.

According to the head of Bafin, the blockchain technology must stop being “promising”, and it’s time to become “effective and scalable”.

“Not all business models [in the industry] are serious. The waves of innovation, as we know, also bring freeloaders and scammers with them, ”Branson added.

According to him, some cryptocurrencies carry significant investment risks.

“At present, they are not threatened to financial stability. However, events can go in such a way that the impulse will turn towards the growth of the market [digital assets] and then their relationship with traditional finances will intensify, ”Branson believes.

Regarding the regulation, he noted that a flexible and balanced policy is necessary – excessively strict rules should not slow down the innovation.

“Bafin adheres to this approach,” Branson emphasized.

Recall that in November the regulator issued an order to eliminate the shortcomings in organizing a business licensed division of Coinbase.

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