Germany’s Largest Federal Bank Landesbank Baden-Wurttemberg to Offer Crypto Custody Services
Landesbank Baden-Wurttemberg, the biggest bank in Germany, has offered the service to offer crypto custodial services. The bank in question intends to initiate the new services starting the second-half of 2024.
To make the services accessible to clients, the firm is partnering with an Austrian-based institution called Bitpanda Exchange.
Institutional Acquisition of Bitcoin
The federal bank has noticed a significant spike in institutional acquisition of Bitcoin and digital assets as per managing director Jurgen Harengel. Harengel told Bloomberg that the demand for corporate consumers towards digital assets has continued to rise and the federal bank is intent on leveraging the Bitpanda Custody for DeFi capabilities.
It is worth noting that Bitpanda is registered with the Financial Conduct Authority (FCA) the British regulatory agency.
The partnership is going to allow the banks to unlock the potential of Bitpanda as a digital asset platform that will facilitate custodial services.
Gonzalo Lamas, the head of international communication at Bitpanda told journalists from Cointelegraph that as part of the conversation, LBBW leveraged the investment-as-a-service model that is used to source and provide custodial services for Bitcoin, Ethereum, and other digital assets.
Bitpanda to Partner with German Federal Bank LBBW
Bitpanda noticed that LBBW digital asset offerings bring high security and innovative solutions for corporate clients. In addition to LBBW changes, another German bank that is undergoing major regulatory transformation is Deutsche Bank that introduced digital asset custodial services since September 2023.
The bank has been focused on capturing Swiss startups such as Taurus that offer custodial options and tokenization features.
DZ Bank, the second-largest banking firm in the region, has also shared plans to introduce a new crypto trading platform in 2024. The bank has revealed that its digital asset custodial platform in November 2023.
At the same time, just about all major banking firms in Europe are working on adopting the MiCA regulations directed towards regulating digital assets and related services.
MiCA laws are set to go into effect by December 2024 as the first of its type universal legal framework for the cryptocurrency sector. Vyara Savova, senior policy head at European Crypto Initiative spoke with journalists from Cointelegraph indicating that crypto trading platforms are going to become fully regulated firms from the end of 2024.
She stated that 2024 is the year of MiCA and the entire EU now has an all-encompassing legal framework.
MiCA Laws of Europe
The head further noticed that MiCA laws are going to be implemented on digital asset products, services, providers, and users. Trading platforms in the EU will also be regulated under MiCA and operate as fully regulated entities as of December 2024.
MiCA is finalized and the second consultation package for reserve advocacy policies as per the MiCA bill will end on 29th April. The result of this consultation is going to have a greater implications for the final implementation of MiCA in December as per Savova.
The executive further stated that consultation will pave the way for how trading platforms operate within and outside of the EU. In case, any of these platforms are offering services to crypto investors based in EU regions.
It is necessary for these firms that are operational in the region without a license and MiCA will direct how the consultation is going to be critical for implementation in December 2024.
Another instance where banking institutions are making progress on the regulatory front is the case of Custodia Bank as reported by Cointelegraph. Custodia Bank recently filed a notice of appeal with the US 10th circuit court of appeals.
The firm challenged the decision of regulators to bar it from joining the American banking network. The filing was officiated on 26th April, where the bank sought approval from the federal appeals court. However, the Wyonming court dismissed the demand from Custodia Bank to have a Federal Reserve account in the USA.
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