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German Bank WEG Obtains Estonian Crypto License

German Bank WEG just obtained a crypto trading and custody license in Estonia that will see them handle crypto transactions

The bank revealed this in a tweet on Aug 25 while also revealing its plans to secure a similar license in Germany. Securing a securities trading and custody license in Europe’s largest economy will take some doing, but the bank is positive that it can be done. In a recent statement the bank stated

“We announce that as of today we have secured full access to a crypto trading and custody license in Estonia and are equally applying for a securities trading and custody license in Germany.”

WEG bank also highlighted that it believed that “working out of a premium regulatory environment is one if its” key assets

The Germany based bank has been involved in more crypto partnerships than this one. Back in April, Nimiq- a browser based blockchain based payments system- acquired a 9.9% stake in WEG bank. This 9.9% stake acquisition followed a partnership that was meant to facilitate a smooth crypto to fiat corridor that would allow for seamless exchange of value between crypto and traditional banking systems.

Back in May of 2018, a prior acquisition had been agreed. Crypto payments startup Tokenpay announced a partnership with the bank after acquiring a 9.9% stake. These partnerships represent an increasing interest by banks in crypto over the last year. This rising interest is being influenced by a soaring consumer interest in regulated cryptocurrency and blockchain services. Just recently Swiss bank Maerki Baumann saw an increased demand for its future blockchain offerings, with 400 new clients seeking those services.

WEG bank’s success in acquiring an Estonian crypto license could spur other financial institutions to seek a similar license. Banks such as JP Morgan are already jumping in the deep end when it comes to Crypto. It is not only offering crypto services but has also moved to create its own digital token.  

Image Courtesy of Pexels

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