German Stock Exchange Gets Serious About Cryptocurrencies
Germany’s Stuttgart stock exchange (Borse Stuttgart) announced on the 30th that blocknox, which belongs to the digital sector, has obtained the final license as a crypto asset (virtual currency) custodian from the country’s financial regulator BaFin.
As a result, we will provide a series of services such as brokerage, trading, and custody of virtual currencies to institutional investors.
Germany has set new legal regulations for cryptocurrency businesses since January 1, 2020, requiring special licenses for the storage of cryptocurrencies. Blocknox has been granted a new licence, having previously held interim status as a regulated financial services provider.
Stuttgart Stock Exchange Digital Division and operational director Oliver Vins of blocknox said:
Trust, stability, and transparency are essential for a cryptocurrency market to function well. Based on these core principles, BaFin’s license paves the way for us to provide financial institutions across Europe with secure access to the growing market of digital assets.
What is custody
Refers to holding and managing assets on behalf of investors. A term widely used for assets other than virtual currency. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian.
What is the Stuttgart Stock Exchange?
The Stuttgart Stock Exchange is the sixth largest exchange group in Europe. It has set strategic pillars of capital markets business and digital assets/virtual currency business. It operates exchanges in Germany, Sweden and Switzerland and has 700 employees.
Its digital asset arm, Boerse Stuttgart Digital, operates a cryptocurrency exchange for retail and institutional clients.
SBI Group subsidiary SBI Digital Asset Holdings (SBIDH) just expanded its investment in this digital sector in January. Other investors include Axel Springer and Finanzen.net.
In 2018, the Stuttgart Stock Exchange released the cryptocurrency trading app Bison. In 2021, it reported that trading volume will reach more than about 320 billion yen ($2.4 billion).
He also said that when major cryptocurrency exchange FTX went bankrupt in November 2022, new customers increased.
At the time, Ulli Spankowski, head of digital at the Stuttgart Stock Exchange, said: “Trading app Bison and the Boerse Stuttgart Digital exchange saw their highest growth rate since April as they met the credibility demanded by customers. I am recording it,” he commented.
Spankowski went on to say that because Germany has a Bafin registration system, problems like FTX are less likely to occur.
We report our virtual currency inventory in custody periodically throughout the year. If customer funds are transferred to a sister company, as happened with FTX, you will notice early on.
The custody business, blocknox, also explains that it checks the status of the cryptocurrencies it manages as part of its annual audit.
Nasdaq’s cryptocurrency business
As an example of a stock exchange, Nasdaq, a major U.S. stock exchange, will launch a cryptocurrency custody service for institutional investors called “Nasdaq Digital Assets” by the end of the second quarter (April to June) of this year. is aiming to launch
Nasdaq is already offering crypto-related indices and crypto-native financial crime services.
connection: US Nasdaq to launch virtual currency custody service soon