Comment: Crypto regulation

The crypto market has become and will remain an undeniable part of our financial system and Germany has become the frontrunner in regulating the market

Jochen Werne

The German Act Implementing the Amending Directive on the Fourth EU Anti-Money Laundering Directive (Federal Law Gazette I of 19 December 2019, p. 2602 (Gesetz zur Umsetzung der Änderungsrichtlinie zur Vierten EU-Geldwäscherichtlinie) has included crypto custody business in the German Banking Act (Kreditwesengesetz – KWG) as a new financial service. Since the Act came into force on 1 January 2020, undertakings wishing to provide this service are required to apply for an authorisation from BaFin.

One of the prerequisites receiving the authorisation is the proof the the managing directors of an institution must be qualified and reliable and devote sufficient time to the performance of their duties (section 25c (1) of the KWG). This also applies for the conduct of crypto custody business within the meaning of section 1 (1a) sentence 2 no. 6 of the KWG. A managing director’s lack of qualifications will constitute a ground for denial of authorisation (section 33 (1) no. 4 of the KWG).

Aside from the fact that lifelong learning is a MUST for leaders in our rapidly changing technology-driven environment, the crypto regulation Germany has opted for underscores an important point: “The crypto market has become and will remain an undeniable part of our financial system.”

It was a pleasure participating with other executives of innovation driving companies and banks at the 1st Crypto Custody Certificate Course offered by WM Seminare.

The well balanced equilibrium between theory and practise makes the course valuable. Especially the expert speakers as Dr. Carola Rathke ( Eversheds Sutherland ), Veronika (Vicky) Ferstl (TEN31 Bank AG ), Dr. Sven Hildebrandt ( DLC Distributed Ledger Consulting GmbH ), Martin Kreitmair ( Tangany GmbH ), Dr. Tim A. Kreutzmann, LL.M. (SUN) ( BVI Bundesverband Investment und Asset Management e.V. , Jacek Trzmiel ( Coinfirm ) & Christopher Zapf ( Tangany GmbH )

https://www.bafin.de/EN/Aufsicht/BankenFinanzdienstleister/Markteintritt/Kryptoverwahrgeschaeft/kryptoverwahrgeschaeft_node_en.html

Security briefing: When cryptos meet high-security facilities. State-of-the-art wealth custody trends.

SAVE THE DATE: 29 September 2021 – 11.30 a.m. Berlin Time

It‘s a great pleasure giving a keynote at the VÖB-Service GmbH #VSK2021 Conference and to discuss with financial industry experts fundamental questions about the FUTURE OF MONEY

The ten most successful bank robberies in human history, in which the equivalent of US$1.62 billion was captured at great expense, seem almost like the work of amateurs compared to the US$3.78 billion captured by cybercriminals in 2020 alone.
In a world where tech companies are spearheading campaigns to create a new #cryptocurrency, where bitcoin is surpassing the US$50,000 mark because a visionary electric car maker wants to recognise cryptocurrency as a means of payment, Jochen Werne, Member of the Executive Board Prosegur Germany, asks some fundamental questions. “How must money be defined in a digital world in order to fulfil the characteristics of a generally recognised and reliable store of value and medium of exchange?” Or also: “What changes are coming to the financial industry when #Stablecoins spread and challenge the classic deposit business of banks?”


In our stream Digitalisation at #VSK2021, Jochen Werne presents possible answers to these and other questions.


Be there and register today for the #Kreditwirtschaft congress on Wednesday, 29 September! 👉 https://lnkd.in/gMe2g59