The first German cryptocurrency exchange is in the making while the country is following the European Union (EU) guidelines as well as the Financial Action Task Force (FATF) guidelines.
The Humburg-based Distributed Ledger Consultancy DLC has now opened a proposal for digital assets custodianship, revealing its plan to form what would be Germany’s first cryptocurrency exchange.
Need for first German cryptocurrency exchange
Digital Assets Custody dot com is among the largest comparison website for digital assets custody on the internet with a clientele of financial institutions and custodians. The subdivision of DLC Distributed Ledger Consulting GmbH has opened a request for proposal process for custodianship of digital assets seeking to form what would come to be the first German cryptocurrency exchange.
The firm is looking for custodians that fulfill the regulatory requirements while offering insurance of digital assets in custody as well, including both hot and cold storage solutions.
Dr. Sven Hildebrandt, CEO of Distributed Ledger Consulting GmbH expresses:
“We are looking forward to finding a solution for the exchange in order to keep business operations legal. And we expect a lot more inquiries in the next few days and weeks, as March 31st is approaching rapidly. Since operating without a license is a felony and not a misdemeanor, we feel this law should not be underestimated.”
The German law dictates in the new crypto-custody-law, every entity holding the private-keys for others (like most exchanges do), must be licensed since January 1st, 2020, in order to serve German customers legally. The firm is taking its first step while condoning to the German law and regulatory framework. While recently, the German stock exchange has commenced Bitcoin trading.
Featured Image by Geralt