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Crypto Finance's German arm has been granted four licenses by the German Federal Financial Supervisory Authority (BaFin), a significant development as its parent company, Deutsche Börse, gears up to launch a digital exchange.
Expansion into Germany's Regulatory Landscape
As a supplier of institutional-grade digital asset investment products, trading, and custody, Crypto Finance (Deutschland) already operates under the regulatory oversight of the Swiss Financial Market Supervisory Authority (FINMA).
According to an official announcement, the subsidiary, with newly acquired German licenses, is authorized to conduct regulated digital asset trading, settlement, and custody services tailored for institutional clients within Germany.
Deutsche Börse's acquisition of a majority stake in Crypto Finance Group, headquartered in Switzerland, in 2021 marked a strategic move. The group is renowned for its offerings on the SIX exchange in Switzerland, where it pioneered the launch of the first Swiss crypto asset investment fund.
Preparations for the DBDX Exchange Launch
In November, Deutsche Börse unveiled plans to roll out a cryptocurrency exchange targeted primarily at institutional users.
According to Coin Telegraph, dubbed DBDX, the forthcoming exchange is slated for launch later this year. Stijn Vander Straeten, CEO of Crypto Finance Group, expressed confidence in the subsidiary's readiness to contribute to the ecosystem of the upcoming exchange following the BaFin approvals.
By securing BaFin licensing, Crypto Finance positions itself within the regulatory framework outlined by the Markets in Crypto-Assets (MiCA) legislation, which is set to come into effect starting in 2024 gradually.
BaFin's Regulatory Stance and Competitor Dynamics
BaFin rejected Binance's crypto custody license application in June 2023, contrasted with its approval of Deutsche Bank for the same function shortly after.
In March, it greenlit the custody application of Boerse Stuttgart Digital blocknox, a direct competitor of Deutsche Börse. Additionally, in November, BaFin extended its nod of approval to BitGo, a United States-based Provider of crypto custody services.
According to Coin Live, Deutsche Börse, the parent company, owns the Frankfurt Exchange, which oversees operations at the Deutsche Börse Xetra digital exchange. This adds another layer to Deutsche Börse's presence within the digital asset ecosystem.
Photo: Christian Wiediger/Unsplash
