Deutsche Börse’s Subsidiary Crypto Finance Gets BaFin License

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By BitcoinWiki News

Key Takeaways:

– BaFin, Germany’s financial regulator, issues four licenses to Crypto Finance, a firm operated by Deutsche Börse
– Licenses allow Crypto Finance to carry out regulated digital asset trading, settlement, and custody services in Germany
– Targeting institutional investors to strengthen position within the crypto ecosystem
– Deutsche Börse aiming to launch a crypto exchange, DBDX, and introduce a regulated stablecoin
– Börse Stuttgart operates a crypto exchange called ‘BSDEX’ to offer institutional custody services for BTC and Bitcoin trading

I. Introduction
BaFin, Germany’s financial regulator, has awarded Crypto Finance, a firm operated by leading stock exchange Deutsche Börse, four licenses to carry out regulated digital asset trading, settlement, and custody services in Germany.

II. Background
The Swiss Financial Market Supervisory Authority (FINMA) already regulates Crypto Finance. Deutsche Börse acquired the company in 2021, securing a majority stake, and has been providing its clients with direct access to digital asset services, including post-trade services.

III. Regulatory Environment
The licenses come at a time when Europe is gearing up to implement the Markets in Crypto Assets (MiCA) landmark directive. In October 2023, European officials signed the MiCA framework into law alongside a separate law to prevent money laundering of crypto assets.

IV. Future Plans
Deutsche Börse is planning to launch a crypto exchange – DBDX – to provide a trusted market infrastructure to the crypto space. The company also has plans to introduce a regulated stablecoin to facilitate seamless trading of digital assets.

V. Conclusion
The licenses awarded to Crypto Finance by BaFin mark a significant milestone for the company in Germany, as it aims to strengthen its position within the crypto ecosystem and target institutional investors. The move also aligns with upcoming regulatory changes in Germany and Europe, indicating a growing interest and commitment to the cryptocurrency market.

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