New law enables german banks to sell and store cryptocurrencies in 2020

[darkangel11]

Looks good, but would you want that? Most people who are in the Bitcoin space now wouldn't. That doesn't mean newcomers who trust banks aren't going to be interested, but for me doing it wouldn't have any benefits. Instead of you holding your coins I'd now have to ask my bank for permission just like with fiat money.

-Dear bank, I'd like to send my coins to another country, how much will it cost and when will you be able to realize the payment?

-Dear client, your tax returns aren't due, so we are freezing your bitcoins until we get a sign from your local tax office. Also, we are freezing some of your bitcoins permanently because because they come from silk road. Have a nice day.  

 

I guess you misunderstood the idea of cryptocurrency banking. What banks will do is to sell and store cryptocurrency, meaning people will ask for them to keep their asset in form of cryptocurrency. You are wrong based on the examples you have given. First of all, you basically think of crypto banking acts like a physical exchange, it somehow does but the fact that it is regulated is so much more to compare with exchanges. Second, if people would need their money, they wouldn't be asking permission for the bank to sell it to another country, the bank itself has their money backed on the asset so it will be very a seamless transaction.

What germany did is a great move given the fact that they have a negative interest rate with their banks. This is beneficial, giving the option for cryptocurrency investment to get away with forceful spending of money by the banks.

I see that we are talking on different frequencies because what I meant by asking permission is that when you allow others to hold your crypoto for you it no longer is yours. The person who controls the private key is the owner. If you give your bitcoins to a banker he becomes the owner.
I also spoke about permission because that's what you're doing when you're sending money from your bank account. It's not an automated process. The bank can disagree and not complete the transfer. It happened many times just google it. In many countries banks were denying service to their customers saying that they will not allow them to send money to a casino, or to another country covered by an embargo, or when they were suspecting you of criminal activity. This doesn't mean you were really doing it, you were only a suspect, but they were treating you like a criminal.
Start sending coins to banks and you will lose freedom that cryptocurrencies are giving you.

[1714859111]

1714859111

[abhiseshakana]

With the enactment of the anti-money laundering law in Germany, I feel that it benefits banks by preserving their interests, existence, and hegemony in the economy. Many people realize that the wave of blockchain and the era of digital currency is inevitable. From the business side, this regulation is very beneficial for the Bank because banks have a variety of forms of service which will certainly increase bank profitability.

Learn from the experience of several banks in Germany that went bankrupt due to money laundering scandals. Then bank officials need to ensure that their banks will not be used for money laundering. It is in their own interest not to be taken advantage of for money laundering or terrorist financing purposes - simply to avoid any damage to their reputation or to prevent significant financial losses which may also jeopardize a bank's very existence.

For the German government itself, this policy will spur the entry of revenues into Germany and spur German economic turnover which had slowed down due to the global economic downturn. The German economy has been supported by manufacturing exports, which have been affected by the weakening global economy.

With the certainty and legal umbrella for cryptocurrency trade in Germany, it is expected to be transmitted to many other countries. This policy can also be used as a pilot project for other countries which so far only wait and see become learn and action because in essence blockchain and cryptocurrency technology does offer many advantages.

[beerlover]

I am not entirely sure if I want the government to know how much money I have in my bitcoin account.
Now, as adoption it is great because it allows everyone to have a bit of bitcoin in their bank account which would make it very simple to get it, however for the ones that got into bitcoin way before it got this much attention, we got into it because we wanted politics out of finance.

Do you know what "having bitcoin in your bank account" means? That means people would be able to give the banks the right to have bitcoin in their systems, so they could basically once again have 1000 bitcoins as a whole bank but tell people they own 9000 bitcoins all because they think nobody will be cashing it out, there are more money on earth than there is cash all due to this problem.

[alyssa85]

I am not entirely sure if I want the government to know how much money I have in my bitcoin account.
Now, as adoption it is great because it allows everyone to have a bit of bitcoin in their bank account which would make it very simple to get it, however for the ones that got into bitcoin way before it got this much attention, we got into it because we wanted politics out of finance.

Do you know what "having bitcoin in your bank account" means? That means people would be able to give the banks the right to have bitcoin in their systems, so they could basically once again have 1000 bitcoins as a whole bank but tell people they own 9000 bitcoins all because they think nobody will be cashing it out, there are more money on earth than there is cash all due to this problem.

The beauty of bitcoin is that you can always hold a wallet on your own computer if you want.

I think this piece of regulation is about making it easier for businesses who which to move seamlessly from crypto to fiat and back to be able to do so without having to set up multiple accounts at multiple exchanges.

[krkrkr]

None of the EU states can  break EU directives.

Where is the link to an actual proposed law?

[clickerz]

I am not entirely sure if I want the government to know how much money I have in my bitcoin account.
Now, as adoption it is great because it allows everyone to have a bit of bitcoin in their bank account which would make it very simple to get it, however for the ones that got into bitcoin way before it got this much attention, we got into it because we wanted politics out of finance.

Do you know what "having bitcoin in your bank account" means? That means people would be able to give the banks the right to have bitcoin in their systems, so they could basically once again have 1000 bitcoins as a whole bank but tell people they own 9000 bitcoins all because they think nobody will be cashing it out, there are more money on earth than there is cash all due to this problem.

The beauty of bitcoin is that you can always hold a wallet on your own computer if you want.

I think this piece of regulation is about making it easier for businesses who which to move seamlessly from crypto to fiat and back to be able to do so without having to set up multiple accounts at multiple exchanges.

By doing so, it offers convenience to crypto peeps in Germany. Whether we like it or not, bitcoin or cryptocurrency is here to stay. With government or a nation letting cryptocurrency or bitcoin being integrated to banks, mean ease of transaction between crypto and fiat.

[tsaroz]

Let's hope most of the banks readily goes along accepting bitcoins and crypto for both deposit and withdrawals. This would enable them to to be a center for crypto around the Europe. Germany is becoming the center of European economy and they are the connecting economy of the east and the west. Their crypto adoption would boost crypto adoption around the world.

[krkrkr]

https://www.handelsblatt.com/finanzen/maerkte/devisen-rohstoffe/kryptowaehrungen-neues-geldwaeschegesetz-banken-duerfen-bitcoin-verwahren/25276392.html

[1Referee]

Let's hope most of the banks readily goes along accepting bitcoins and crypto for both deposit and withdrawals.

I rather hope for people to smarten up on how things work in crypto land so that they will not need banks for coin storage.

Education is key in all facets of life, but apparently, within crypto the education that we have been spreading out didn't work because exchanges still hold gigantic stacks of coins. Perhaps that the cost of hardware wallets going down will help, but I'm not sure what we can do differently to make people aware of the risks and stop using an exchange as wallet.

The aim is to be our own bank, not to have banks yet again be our bank. 

[Betwrong]

I really disagree with the commercial banks participating in this market. because transactions between wallets are out of control. Neither the central bank nor can it do that to commercial banks. If the banks are dishonest they will soon launder money in many ways and evade taxes. In my opinion this is one of the wrong decisions of the German government. What do you think ?

I think we should take into account that it's Germany, not Zimbabwe. I'd say it's pretty hard for banks to be "dishonest" in a country like Germany. I mean, you can try, but you'll be sued(inevitably).

I agree with posters saying here that this is overall good for crypto adoption. I even read one article saying that the new law makes Germany “crypto heaven”. We'll see how it turns out, but so far it's definitely better than laws in some countries forbidding banks to deal with crypto.

[el kaka22]

Even exchanges does have right to not give you your money if they feel like there is a problem going on. Now I know it will be a greatly over the top example but lets assume you are a hacker and you hacked into an exchange, you got everyone's money to your own account and you want to withdraw, exchanges have rights to not give that money to you and disallow you from withdrawing because you are a hacker.

Now think about it in banking terms, banks are entitled to only governments and if government doesn't want you to get rich they will just tell the bank to freeze your assets with court order and you won't be getting it, banks are not dealing on a decentralized system, it is quite centralized, which means your money is now gone. Hence having your own decentralized wallet is more important.

[FairUser]

YEAH! Finall they decided to count us all!

Sure that soon we will got a proposal to store our private keys in banks/ LOL

[Mometaskers]

Why did they bothered with it though? Since this is in Germany maybe they already know some push to change the EU laws regarding cryptos?

If I live there I'd probably use the service to get money from my bank account into crypto but I wouldn't keep the crypto in there. The point of having crypto is to have it as an alternate asset in case banks fail, keeping it in a bank is counterproductive.

Not everyone in the EU is very happy, for example, Britain is attempting to exit a lot of the EU trade agreements since they are quite restrictive and you get basically controlled by the majority of people in the EU, although I do believe the overall rules from the big guys at the EU supersede all ruins made by local governments.

That's fascinating, how they can make rules for you without being even in the Euro zone (from what I remember the UK kept the pound). I'm interested with how Germany would carry on with this, if it'll get struck down by EU or if indeed, there is already plan to change the law and Germany is just preparing for that in advance.

[Spaffin]

Why did they bothered with it though? Since this is in Germany maybe they already know some push to change the EU laws regarding cryptos?

If I live there I'd probably use the service to get money from my bank account into crypto but I wouldn't keep the crypto in there. The point of having crypto is to have it as an alternate asset in case banks fail, keeping it in a bank is counterproductive.

Not everyone in the EU is very happy, for example, Britain is attempting to exit a lot of the EU trade agreements since they are quite restrictive and you get basically controlled by the majority of people in the EU, although I do believe the overall rules from the big guys at the EU supersede all ruins made by local governments.

That's fascinating, how they can make rules for you without being even in the Euro zone (from what I remember the UK kept the pound). I'm interested with how Germany would carry on with this, if it'll get struck down by EU or if indeed, there is already plan to change the law and Germany is just preparing for that in advance.

I think that it is necessary to take into account the fact that Germany has political and economic weight in the European Union.  Countries such as France and Germany are the largest investors in the European Union and therefore no one dares to dictate terms for these countries.

[slashz9]

if Germany would do that, why is it so difficult to do in America and China, because they are in the first and second position of the economy?
what makes it difficult for them to implement it.
whether the rules are different, or the government deliberately prohibits it for a reason.

[manbitcoinlover]

I don't think this is good news for the bitcoin community, because the more laws and the more complication involved bitcoin, the more it strays away from anonymity and the whole purpose of bitcoin in the first place. In my opinion, Germany has a lot of messed up laws, I do not see how this law could be good for btc. Like, honestly they are only doing this to make money from BTC. Do you really think those licenses will be free? Citizens who use BTC will most likely be known, big brother will be watching.

[Mometaskers]

That's fascinating, how they can make rules for you without being even in the Euro zone (from what I remember the UK kept the pound). I'm interested with how Germany would carry on with this, if it'll get struck down by EU or if indeed, there is already plan to change the law and Germany is just preparing for that in advance.

I think that it is necessary to take into account the fact that Germany has political and economic weight in the European Union.  Countries such as France and Germany are the largest investors in the European Union and therefore no one dares to dictate terms for these countries.

That's why I thought Germany is already moving to have the law changed and passed this law in advance to give them a headstart. Coz if not, despite their clout there's going to be resentment. Something that will not do them good as nationalist movements are currently on the rise in Europe.

[Shenzou]

Many people who are viewing bitcoin as a type of investment they would be happy with this news, but for someone who uses it for the benefit it provides anonymity, fast transactions without the need to relay on any other third party this seems contradiction to what we use it for, banks holding bitcoin meaning that you are giving up all the above benefits that it provides and you are letting the government control it the same way they are controlling fiat.

[GideonGono]

Why did they bothered with it though? Since this is in Germany maybe they already know some push to change the EU laws regarding cryptos?

If I live there I'd probably use the service to get money from my bank account into crypto but I wouldn't keep the crypto in there. The point of having crypto is to have it as an alternate asset in case banks fail, keeping it in a bank is counterproductive.

Not everyone in the EU is very happy, for example, Britain is attempting to exit a lot of the EU trade agreements since they are quite restrictive and you get basically controlled by the majority of people in the EU, although I do believe the overall rules from the big guys at the EU supersede all ruins made by local governments.

That's fascinating, how they can make rules for you without being even in the Euro zone (from what I remember the UK kept the pound). I'm interested with how Germany would carry on with this, if it'll get struck down by EU or if indeed, there is already plan to change the law and Germany is just preparing for that in advance.

I think that it is necessary to take into account the fact that Germany has political and economic weight in the European Union.  Countries such as France and Germany are the largest investors in the European Union and therefore no one dares to dictate terms for these countries.

Also, I think that the European Union would mot have the power to override the existing laws and regulations that a member country have since it would become a challenge to their sovereignty of the state. As you had mentioned, countries like Germany have strong economic prowess along with the military and sciences have a major impact as to why an organization could not challenge them over their decision. In addition, I don’t see any harm with this news and should be left as it is than creating unnecessary conflict.

[slashz9]

With the enactment of the anti-money laundering law in Germany, I feel that it benefits banks by preserving their interests, existence, and hegemony in the economy. Many people realize that the wave of blockchain and the era of digital currency is inevitable. From the business side, this regulation is very beneficial for the Bank because banks have a variety of forms of service which will certainly increase bank profitability.

money laundering can still occur if a group wants to do it, the law applies only to reduce.

Learn from the experience of several banks in Germany that went bankrupt due to money laundering scandals. Then bank officials need to ensure that their banks will not be used for money laundering. It is in their own interest not to be taken advantage of for money laundering or terrorist financing purposes - simply to avoid any damage to their reputation or to prevent significant financial losses which may also jeopardize a bank's very existence.

can still happen if people in the bank come into play.

For the German government itself, this policy will spur the entry of revenues into Germany and spur German economic turnover which had slowed down due to the global economic downturn. The German economy has been supported by manufacturing exports, which have been affected by the weakening global economy.

Even though the global economy is weakening, Germany is still in 4th position, so all experienced the same decline, not only Germany.

With the certainty and legal umbrella for cryptocurrency trade in Germany, it is expected to be transmitted to many other countries. This policy can also be used as a pilot project for other countries which so far only wait and see become learn and action because in essence blockchain and cryptocurrency technology does offer many advantages.

yes if only Germany succeeded in carrying out this development it is not impossible other countries would do it too.