Crypto Finance Gains BaFin Approval for Four Licenses Ahead of Deutsche Börse Digital Exchange Launch
Summary:
Crypto Finance's German arm has received four licenses from BaFin, Germany's Federal Financial Supervisory Authority, ahead of Deutsche Börse's plan to debut a new digital exchange. Crypto Finance (Deutschland) is a provider of digital asset investment, custody and trading services for institutions, already regulated by the Swiss Financial Market Supervisory Authority (FINMA). The German licenses will allow it to engage in regulated digital asset trading, settlement and custody services for institutions in Germany. The digital asset securities registry D7 is expected to play a crucial role in the new exchange's ecosystem.
Crypto Finance's branch in Germany has gained approval for four licenses from the country's Federal Financial Supervisory Authority (BaFin). This is taking place as Deutsche Börse, the firm's parent company, is getting ready to debut a new digital exchange. Serving as a facilitator for institutional-level digital asset investments, custody, and trading, Crypto Finance (Deutschland) is already under the regulation of the Swiss Financial Market Supervisory Authority, also known as FINMA. The newly acquired licenses from Germany will enable them to engage in regulated dealings in digital assets, settlement, and custody services tailored for institutions in Germany, as per a recent announcement.
In 2021, Deutsche Börse picked up a majority stake in Crypto Finance Group that is based in Switzerland. The latter has products available on the SIX exchange in Switzerland and was responsible for launching the first crypto asset investment fund in the country. In November, Deutsche Börse unveiled its plan to initiate a cryptocurrency exchange intended for institutional players. This exchange, dubbed DBDX, is set to be launched during this year. Stijn Vander Straeten, Crypto Finance Group's CCEO, stated that the endorsement from BaFin reflects their dedication to security and transparency, and establishes them as a dependable player in the market.
Crypto Finance is now primed to contribute to that new exchange's ecosystem. The D7, a digital asset securities registry established by Deutsche Börse’s subsidiary Clearstream, will probably become an integral element for the new exchange. With the licenses from BaFin, Crypto Finance accordingly places itself within the Markets in Crypto-Assets (MiCA) regulatory structure, parts of which will be implemented in 2024.
Reinforcing the general anticipation, Deutsche Börse CEO pointed out that the exact timeline for the digital asset strategy remains unclear, but it is expected to be deployed by 2026.
Deutsche Börse, also operating the Frankfurt Exchange and Deutsche Börse Xetra digital exchange, saw BaFin reject Binance’s application for a crypto custody license in June 2023. It had previously approved Deutsche Bank for the same license. In March, Boerse Stuttgart Digital blocknox, a competitor to Deutsche Börse, had also gotten approval for a custody application. Last November, BaFin approved US-based BitGo for crypto custody.
Published At
2/12/2024 11:10:00 PM
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