Germany is one of the most crypto-friendly countries in the world, but its banks have been slow to adopt the technology.
In recent months, however, there have been signs that German banks are starting to warm up to crypto, albeit mostly for institutional investors.
In March 2023, Deutsche Bank announced that it would be launching a crypto custody solution for institutional clients. The bank said that the solution would allow institutional investors to store their crypto assets securely and compliantly.
In April 2023, Commerzbank announced that it would be offering crypto trading services to its institutional clients. The bank said that the service would allow institutional investors to trade a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
These moves by Deutsche Bank and Commerzbank are a sign that German banks are starting to take crypto seriously.
However, it is important to note that these banks are only offering crypto services to institutional investors. Retail investors, who make up the vast majority of crypto investors, are still largely shut out of the German banking system.
There are a few reasons why German banks are hesitant to offer crypto services to retail investors. One reason is that crypto is still a relatively new and untested technology. Banks are concerned about the risks associated with crypto, such as the potential for fraud and volatility.
Another reason why German banks are hesitant to offer crypto services to retail investors is that they are not sure how to comply with the regulatory requirements. Crypto is a complex and rapidly evolving industry, and it can be difficult for banks to keep up with the latest regulations.
Despite these challenges, it is likely that German banks will eventually offer crypto services to retail investors. As the crypto industry matures and the regulatory environment becomes clearer, banks will be more comfortable offering crypto services to a wider range of customers.