Guide to German crypto licenses.

With the implementation of the European Union’s Fifth Anti-Money Laundering Directive (AMLD5), the German financial supervisory authority, BaFin, has incorporated the crypto custody business as a new type of financial service into the German Banking Act (Kreditwesengesetz - KWG).

In addition to the implementation of the European regulation, BaFin has introduced a new one-of-a-kind “authorization of crypto custody businesses.” An authorization similar to a license grants the right to offer a certain type of financial service.