German-based giant bank Commerzbank seeks to get regulatory approval for its crypto services, which will be available for institutional clients.
Due to the shift of the people’s interest toward the crypto industry, the majority of the banks are under the hurdle to lose their dominance in financial systems. However, it is not easy for the traditional banks to go with Crypto based services but still few banking giants are doing at their level to bring crypto services into their traditional banking services.
Commerzbank Aktiengesellschaft is a major German bank operating as a universal bank. This bank has headquarter in Frankfurt am Main.
Reportedly this bank filed its application with the Federal Financial Supervisory Authority (BaFin), to get regulatory approval to provide crypto custody services for the clients.
Reports noted that a spokesperson of the Bank confirmed that Bank already filed its application to get a crypto custody license from Bafin in Q1 of this year.
Since 1 January 2021, every company in Germany is required to hold a Bafin license to provide any kind of crypto-related services.
As per rule, If any company or business will provide crypto related services without a Bafin license then in that situation a client can’t consider services 100% secure & compliant based, and if any person or entity will be found to opera crypto-related Services without Bafin license then he may go through punishment for five years.
At present Commerzbank provides Banking services to 28,000 corporate client groups and approximately 11 million private and entrepreneurial clients in Germany. In the initial phase, Bank will provide its crypto custody services for the institutional clients only and after that it may plan for retail users.
In 2021, US-based Nasdaq-listed crypto exchange Coinbase successfully secured a crypto custody license in Germany. Now, this Bank became the first-ever bank this year to apply for this license.