Germany’s Implementation of the EU’s Forth Anti Money Laundering Directive, Introducing a crypo regulation

The German Act Implementing the Amending Directive on the Fourth EU Anti-Money Laundering Directive (Gesetz zur Umsetzung der Änderungsrichtlinie zur Vierten EU-Geldwäscherichtlinie) (Federal Law Gazette I of 19 December 20119, p.2602) has incorporated crypto custody business into the German Banking Act (Kreditwesengesetz – KWG) as a new financial service. As from 1 January 2020, when this legislation entered into force, companies seeking to provide such services require authorisation from BaFin. However, the law includes transitional provisions for those companies that conducted such business before the law took effect, i.e. before such business activities became subject to authorisation requirements.