Brief Need-to-Know – BaFin publishes guidance notice for crypto custodians with information on licence application (crypto custody business part 2)
After the German Federal Financial Supervisory Authority ("BaFin") had commented on the requirements of the newly financial service "made in Germany" - the crypto custody business - (we reported on this in detail in the first part of our series of articles on crypto custody business), it has now followed up. The guidance notice "Notes on the application for a licence for crypto-custody business" ("Guidance Notice") published on 1 April 2020 is a brief Need-to-Know for all those wishing to apply for a licence to provide the crypto custody business, which was recently designated a financial service. Is BaFin overreaching the goal by setting too strict requirements? Answer: Yes and No.