German Bank Bans Ethereum Purchases
DKB prohibits cryptocurrency trading
Large German bank DKB has banned cryptocurrency trading for its customers. As reported by German website Online Casino Deutschland on June 9, the move was made in compliance with regulatory policies enacted by BaFin for financial institutions.
BaFin is Germany’s financial regulatory authority and has maintained a tough stance against cryptocurrencies, frequently warning of the risks associated with investing in them. However, the authority has not implemented an outright ban on cryptocurrency trading and continues to monitor the market.
DKB serves approximately 5 million customers, making it one of the largest banks in Germany. The bank's decision to ban cryptocurrency trading is likely to impact a significant number of potential investors.
DKB is not the only German bank to take action against cryptocurrency trading. In 2021, Commerzbank also banned Bitcoin purchases. Other banks, such as N26 and Bunq, have restricted cryptocurrency transactions or delisted certain cryptocurrency exchanges.
The ban on cryptocurrency trading by DKB and other German banks is a setback for the cryptocurrency industry in Germany. However, it is important to note that BaFin has not implemented a blanket ban on cryptocurrency trading, and it is still possible to buy and sell cryptocurrencies in Germany through other channels.
Despite the regulatory challenges, the cryptocurrency industry continues to grow in Germany. A recent study by the University of Cambridge found that Germany has the fifth-highest number of cryptocurrency users in the world. This suggests that there is still significant interest in cryptocurrencies in Germany, and that the ban on trading by DKB and other banks is not likely to deter everyone from investing in this asset class.
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