Germany's largest bank by assets, Deutsche has applied for a cryptocurrency services license. The bank has filed an application with the country's Federal Financial Supervisory Authority (Bafin). The aim is to seek regulatory approval to provide cryptocurrency services.
David Lynne, head of Deutsche's banking department, spoke about the issue.
“We are building out our digital assets and custody operations.” She added:
“We just submitted our application to Bafin for a digital asset license.”
Lynne further shared that this move is part of their broader strategy. The aim is to increase fee income in Deutsche Bank's corporate banking. Additionally, it mirrors similar efforts by Deutsche Bank's asset management arm, DWS Group, to increase revenue through services related to digital assets, the publication said.
Deutsche initially indicated plans to offer digital assets services by the end of 2020. At that time they did not give a specific timeline for the launch of the service. At that time, the department was under the leadership of Stefan Hoops. The latter joined DWS as Managing Director and Lynne took over the department a year ago.
About Bafin
In Germany, Bafin is responsible for licensing organizations providing cryptocurrency services. Germany's new Money Laundering Act, which came into effect in early 2020, allows financial institutions to offer cryptocurrency products to their customers alongside traditional investments, such as stocks and bonds. At the time, Bafin was said to have received more than 40 “expressions of interest” from banks for approval to operate a future cryptocurrency custody business.
This is not the first major bank that wants to provide cryptocurrency services. Previously UAE and Hong Kong tw bank also cooperated on cryptocurrency regulation.