European Banks Eye Crypto Industry Following Regulatory Clarity
Lukas Enzersdorfer-Konrad, the deputy CEO of Bitpanda, explained that European banks are moving into crypto as an asset class and tokenization technology due to MiCA, the upcoming regulatory framework for Europe, which is suddenly bringing full clarity for banks.
In May 2023, the European Council adopted the first comprehensive legal framework for the crypto industry. The MiCA framework aims to protect investors through more rigorous transparency standards and Anti-Money Laundering (AML) rules.
European banks are now more confident in developing crypto services but lack the technical knowledge and infrastructure. Therefore, they are tapping crypto service providers such as Bitpanda.
Raiffeisen, the largest community banking group in Austria, has partnered with Bitpanda to offer digital asset services to retail banking customers, while other major banks are looking to develop corporate crypto services.
Beyond the MiCA bill, the approval of the first spot Bitcoin (BTC) ETFs in the United States has also acted as a strong catalyst for institutional interest, which is reflected across the biggest European banks.
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According to Enzersdorfer-Konrad, across all Europe, all sizes of banks, from tier one to tier three, are clearly looking for crypto service providers and use cases about how to start.
Last week, Germany’s largest federal bank, the Landesbank Baden-Württemberg (LBBW), announced it will offer crypto custody services to institutional clients starting in the second half the year. The bank is leveraging Bitpanda’s infrastructure to provide custodial service.
Some of Germany’s largest corporations, which are LBBW’s clients, were already holding crypto assets before the bank started exploring custodial solutions, according to Bitpanda’s deputy CEO.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
