Germany’s DekaBank Receives Crypto Custody License from BaFin and ECB

DekaBank in Germany has received a banking cryptocurrency custody license from the country's regulatory agency BaFin and the European Central Bank (ECB). Commerzbank was the first German bank to receive a license last year, while other major banks, including DZ Bank, have not yet obtained a license.

BaFin has issued 11 additional cryptocurrency custody licenses, mainly for cryptocurrency companies. One of them is the digital asset custody subsidiary of Hauck Aufhäuser Lampe Privatbank.

The difference between DekaBank and Commerzbank and cryptocurrency companies is that the former is licensed under the Banking Act (KWG). This is the second new license obtained by DekaBank this year. In July, the company obtained an encrypted securities registration agency license for issuing DLT-based digital securities in Germany. These encrypted securities can be issued without the need for a central securities depository (CSD).