Biggest European Banks Embrace Crypto Due to Regulations: Bitpanda

European Central Bank

Thanks to the clear regulations outlined in the Markets in Crypto-Assets (MiCA) framework, several major banks in Europe are now exploring opportunities in the cryptocurrency sector.

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Lukas Enzersdorfer-Konrad, Bitpanda’s deputy CEO, notes that European banks are increasingly embracing cryptocurrencies and tokenization technology. He attributes this shift to the clarity provided by the forthcoming regulatory framework, MiCA, which is enabling banks to confidently navigate the crypto space.

European Banks Embrace Crypto Amid Regulatory Clarity

In May 2023, the European Council introduced the MiCA framework, marking the first comprehensive legal guidelines for the crypto industry. MiCA aims to safeguard investors by implementing stricter transparency standards and Anti-Money Laundering (AML) regulations.

With regulatory clarity emerging for the first time, European banks are increasingly inclined to explore crypto services. However, they often lack the technical expertise and infrastructure required for such ventures. Consequently, many banks are turning to established crypto service providers like Bitpanda to fill this gap.

According to Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, banks are realizing their need for external expertise and solutions to enter the crypto market quickly. This shift is evident in partnerships like the one between Raiffeisen, Austria’s largest community banking group, and Bitpanda, aimed at offering digital asset services to retail banking customers. Similar initiatives are underway among other major banks, particularly in the development of corporate crypto services.

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Beyond the MiCA framework, the recent approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States has further fueled institutional interest in crypto. This trend is noticeable across Europe, with banks of all sizes, from tier one to tier three, actively seeking crypto service providers and exploring potential use cases for their entry into the market.

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German Bank Enters Crypto Custody Space with Bitpanda Partnership

Last week, Landesbank Baden-Württemberg (LBBW), Germany’s largest federal bank, revealed its plans to introduce crypto custody services for institutional clients in the latter half of the year. To facilitate this service, LBBW is leveraging the infrastructure provided by Bitpanda, a prominent crypto service provider.

According to Bitpanda’s deputy CEO, some of Germany’s major corporations, which are clients of LBBW, had already been holding crypto assets prior to the bank’s exploration of custodial solutions. This indicates a preexisting demand for crypto custody services among LBBW’s corporate clientele.

Enzersdorfer-Konrad elaborated that banks like LBBW are responding to growing corporate interest in crypto by expanding their offerings to include crypto custody solutions. He noted that given the public’s trust in financial institutions to hold traditional assets like fiat money and precious metals, the transition to offering crypto custody services is a natural progression for banks.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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