Anti-money laundering laws or AML are now believed to be the latest force to drive crypto institutional adaption. Britain has recently been very hard on the crypto AML compliance to ensure a safe financial environment for all sectors.
Per the latest developments after the fifth anti-money laundering directive (AMLD5), there has been a spike in the institutional cryptocurrency interest, reveals the Chief Digital Officer Dr. Ulli Spankowski at Boerse Stuttgart.
AML conference increasing crypto institutional adaption
At a recent event, the CryptoCompare Digital Asset Summit held in London, Dr. Spankowski, stated that he was amazed by the positive impact of AMLD5 on the institutional interest in the crypto space. He stated that he was not sure that this would happen as banks and financial institutions were already practicing crypto custody and were capable of doing crypto trading.
Spankowski added that as the law takes into effect, Boerse Stuttgart witnessed that traditional players are also taking an interest in crypto space, in turn, increasing crypto institutional adaption.
In September 2019, the trading platform entered the cryptocurrency space by launching bitcoin-euro spot pair on its subsidiary Boerse Stuttgart Digital Exchange. Moreover, various crypto products have been listed by the platform.
Dr. Spankowski further stated that since there needs to be a license for listing cryptocurrencies by the trading platform, this might have investors thinking of it as legit. He stated that as BSDEX has over one hundred and twenty institutional clients, and with Germany’s financial regulators, they have an open relationship, this acts as a secure gateway for crypto.
Interestingly, AMLD5 requires firms based in European Union countries to get registered with the local regulators, hold data of the source of clients’ funds, and introduce KYC checks. So, many cryptocurrency companies left the region, including KyberSwap and Deribit.
Featured Image by Brian A Jackson