New Regulations Attracting Institutional Investors
Boerse Stuttgart announced that its cryptocurrency custody division is preparing to offer custody services to institutional clients such as fintech firms, banks, and asset management companies. Blocknox, a subsidiary of Boerse Stuttgart Digital Ventures, handles the custody of cryptocurrencies on behalf of these clients.
Ulli Spankowski, Managing Director of Blocknox, explained:
"Regarding Germany’s new crypto regulatory framework effective January 1, 2020, Blocknox has announced its application for the required license. This means the license is provisionally granted."
The company emphasized:
"We welcome regulated cryptocurrency custody as a logical step toward industry professionalism. New legislation may encourage greater institutional participation in the crypto market."
Expansion of Services
- Blocknox’s custody service initially launched in January 2019 for BISON, a crypto trading app backed by Boerse Stuttgart.
- By September 2019, the service expanded to BSDEX, Boerse Stuttgart’s digital asset trading platform.
- In December 2019, Boerse Stuttgart partnered with SBI Holdings to extend crypto services across Europe and Asia.
👉 Discover how institutional crypto custody works
Supported Cryptocurrencies
BISON currently supports trading for:
- BTC
- ETH
- LTC
- XRP
The app requires a German bank account and has grown to 81,000 active users, with plans to add BCH soon.
Germany’s New Crypto Regulations
Key Requirements
- The amended Fourth EU Money Laundering Directive took effect on January 1, 2020.
- Financial institutions offering crypto custody must obtain authorization from BaFin (Federal Financial Supervisory Authority).
Timeline for Compliance
- Existing crypto custody providers must submit a letter of intent by March 31 to continue services.
- Final applications are due by November 30, or providers must cease operations.
- Over 40 financial institutions have already submitted letters of intent.
BaFin clarifies:
"Licensing timelines vary case by case. Administrative practices for ongoing oversight are still being finalized."
👉 Learn more about crypto compliance in Europe
FAQ Section
1. What services does Blocknox provide?
Blocknox offers regulated cryptocurrency custody for institutional clients, including banks and asset managers.
2. How does Germany’s new law affect crypto businesses?
It mandates BaFin authorization for custody services, aiming to reduce fraud and increase institutional trust.
3. Which cryptocurrencies are supported on BISON?
Currently BTC, ETH, LTC, and XRP, with BCH coming soon.
4. What’s the deadline for compliance?
- March 31: Letter of intent due.
- November 30: Full application or service termination.
5. Can international investors use BISON?
No—the app requires a German bank account.
6. How many users does BISON have?
Approximately 81,000 active users as of recent reports.