Regulatory Alerts2020-03-19 | Guidance on interpreting section 64y of the KWGAdded · Updated
Guidance on Interpreting Section 64y of the KWG
BaFin issued this guidance to clarify that section 64y of the German Banking Act automatically grants provisional authorization to companies conducting crypto custody business as of 1 January 2020. To qualify, these entities must notify BaFin in writing by 31 March 2020 and submit a complete authorization application by 30 November 2020. The transitional rules apply to unauthorized firms, tied agents, foreign cross-border providers, and existing authorized institutions expanding into crypto custody, while excluding services already classified as financial instruments under prior legislation.