European Central Bank steps in as banks dip toes in crypto pool

The ECB said banks were also considering whether to get involved in the crypto sector

The European Central Bank (ECB) said on Wednesday it would harmonise how banks offer cryptoassets to ensure they have enough capital and expertise in a sector some European Union lawmakers have described as the Wild West.

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Several crypto companies like Binance and Crypto.com have been authorised in EU countries such as Italy, France, Spain, Greece or Germany after complying with national safeguards to combat money laundering and terrorist financing.

This comes ahead of pan-EU licensing rules from 2023 at the earliest.

The ECB said banks were also considering whether to get involved in the crypto sector, but that national rules diverged quite extensively.

"In Germany, certain crypto activities are subject to a banking licence requirement and to date, several banks have requested to be authorised to conduct these licensed activities," the ECB said in a statement

"It is in this context that the ECB is taking steps to harmonise the assessment of licensing requests."