These licenses, granted to its subsidiary, Crypto Finance (Deutschland) GmbH, authorise regulated digital asset trading, settlement, and custody services in Germany. This development aims to further solidify Crypto Finance's position within the regulated European digital asset landscape, emphasising its dedication to offering institutional-grade services while adhering to regulatory frameworks.
In the official press release, representatives from Crypto Finance Group, expressed enthusiasm about the licensing of Crypto Finance (Deutschland) GmbH by BaFin, highlighting the company's commitment to transparency, and security, and its emergence as a trusted entity in the market. They also highlighted that this achievement underscores the company's efforts towards establishing a reliable ecosystem for crypto assets within the stringent regulatory environment.
Officials from Crypto Finance (Deutschland) GmbH, emphasised the company's comprehensive approach, positioning itself as a one-stop solution for digital asset services. They noted the significance of covering the entire value chain and the pride in achieving milestones in Germany, where the company offers highly regulated services. They also brought up the company's offerings beyond trading, extending to settlement, custody, and post-trade services, catering to institutional investors looking to access to the dynamic digital asset realm.
Crypto Finance Group, comprised of two FINMA-regulated financial institutions and a subsidiary licenced by BaFin, offers professional digital asset solutions. These solutions include brokerage services, custody, infrastructure, and tokenisation solutions for financial institutions. Additionally, it is the first FINMA-approved manager of collective assets for digital assets, providing alternative investment fund offerings.
According to soliduslabs.com, in Germany, cryptocurrencies are classified as financial instruments or assets, making them subject to laws related to securities, commodities and investments. Germany has proactively regulated cryptocurrencies, enacting a law in 2020 that mandates all cryptocurrency exchanges operating within its borders to obtain a licence from the Federal Financial Supervisory Authority (BaFin).
The same source reveals that BaFin plays an important role in Germany’s crypto environment, overseeing the regulation of its markets, including cryptocurrency exchanges, brokers, and custodians.
Moreover, Germany has clear AML regulations that are applicable to cryptocurrency exchanges and service providers. These providers must implement Know Your Customer (KYC) procedures and monitor transactions to prevent money laundering and terrorist financing. They are also required to report suspicious activity to the Financial Intelligence Unit (FIU) via BaFin’s Suspicious Transaction Reporting System.
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