After the end of the application period for crypto custodians active in Germany before 2020, the approval process continues.
The Federal Financial Supervisory Authority ( BaFin ) is currently examining at least nine license applications for crypto custodians operating in Germany before 2020 . This emerges from the response of the federal government to a small request from the FDP parliamentary group in the Bundestag.
The German market for crypto custodians remains clear
“In the absence of relevant statistics, the federal government can only provide very limited information about the number and turnover of companies that are active in the business of crypto currencies and other crypto values,” the text says. The Federal Financial Supervisory Authority (BaFin) has received nine permit applications, which are currently still being examined. Companies wishing to apply for a permit had to notify BaFin of this by March 31, 2020.
The legislature combined the introduction of the crypto custody business and the expansion of the financial instruments in the Banking Act (KWG) to include crypto values with a transitional regulation. Companies that were already active as crypto custodians before 2020 were initially able to continue their business, but had to submit a complete permit application by November 30, 2020. The examination of these applications continues.
According to the federal government, there were originally 50 notifications of intent. The number of only nine submitted applications one week before the end of the deadline is significantly lower, but could have increased significantly by the deadline.
Crypto values are an official financial instrument
Crypto values such as crypto currencies and security tokens were in the list of official financial instruments through an amendment by the end of 2019 added Service. As a legal consequence, the existing regulatory provisions for financial instruments also apply to crypto values. Companies such as wallet operators and crypto exchanges that “store” crypto assets have required permission from BaFin for this since 01.01.2020.