German Banks Are Allowed To Exchange BTC/ETH To Euro According to Regulator
The Finance Minister of Germany, BaFin has confirmed that at least 6 of the financial institutions have entered the market and involved in acquisition or trading of cryptocurrencies. Also, the regulator allows the banks to exchange Bitcoin and Ethereum among other cryptos through ATMs signaling the increasing interest in the crypto market..
In response to the inquiry made by Thomas Lutze of The Left, a left-wing populist political party, BaFin revealed this information. According to the agency, at least six of the financial institutions are already dealing with cryptocurrencies. However, the name of the entities or banks hasn’t been revealed yet.
Right now, there are no open inquiries against any of these financial institutions on the suspicions of breach of reporting obligations, due diligence or money laundering.
Moreover, each of these institutions that have the permission for proprietary trading can also set up crypto ATM machines in the Germany territory. This means the banks have the right to offer the exchange of Bitcoin or Ethereum to Fiat on these ATMs.
Banks allowed to exchange BTC & ETH to Euro & vice versa via ATMs
BaFin has been reported as saying with a rough translation of:
“Each institute, which has permission for proprietary trading, also has the right to set up machines that allow the exchange of Bitcoin in euros and vice versa. So far it is not known that this was done.”
Despite the option available to facilitate crypto to euro or vice versa exchanges, no bank has taken it up for the moment. What remains to be seen is if this will change as Bitcoin ATMs are constantly increasing, the number goes well over 3,000 worldwide.
ATMs are fairly easy to modify for crypto purposes as it requires the incorporation of QR codes in order to facilitate the address scanning and verification of cryptos.
Germany is significantly increasing its Bitcoin adoption pace as recently, country’s largest stock exchange shared its plans to offer Bitcoin products. Before that, the second largest stock exchange officially entered the crypto market as it launched an application that will go live with the trading of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) in the next September.
Moreover, a number of Germany’s industries are working on blockchain business, especially in car manufacturing and energy sector. The growing interest and adoption of cryptocurrencies in one of the biggest economies of Europe is a surefire sign of crypto market growth.
With about 6 banks already trading cryptos, it is a very positive news for the overall crypto market. As financial institutions enter into the crypto space, the funds are expected to pour-in in more substantial amounts.