European Anti-money Laundering (AML) regulations are proving very effective and are impressively increasing the institutional interest in the cryptocurrency space. The newly introduced regulation AMLD5 has positively affected the institutional interest.
The Chief Digital Officer at the Boerse Stuttgart exchange Dr. Ulli Spankowski has recently unveiled the fifth anti-money laundering directive (AMLD5) which arisen the institutional interest in the cryptocurrency. Spankowski was very impressed with the way AMLD5 has affected the interest of the institutional investors.
While sharing his thoughts in London at the CryptoCompare Digital Asset Summit, Spankowski stated:
“I actually didn’t think anything would happen because banks and other financial institutions could already do crypto custody [and] could do crypto trading.”
Moving on, the Chief Digital Officer claimed that Boerse Stuttgart has seen an unexpected increase in the interest of the institutional investors on the cryptocurrencies after the regulatory law got implemented. And various cryptocurrency products have been added on this trading platform.
However, in September 2019 when the trading platform introduced a bitcoin-euro spot pair on the Boerse Stuttgart Digital Exchange (BSDEX), it completely made its way into the crypto space.
We could be the gate opener for cryptocurrency, says Spankowski
Furthermore, Spankowski mentioned that the trading platform has got a license for adding cryptocurrencies. Therefore, the institutional investors might be considering it as legit. According to the chief executive, there are around 120 institutional investors on the Boerse Stuttgart Digital Exchange.
According to Spankowski, the BSDEX might serve as a trusted “gateway” for digital assets. He claimed: “We could be the gate opener [for crypto] … because the traditional financial industry is already connected to us on a European scale. This is where we think our sweet spot actually is.”
It is important to mention here that because of the AMLD5 directive, several crypto companies such as the non-custodial exchange KyberSwap and the options exchange Deribit decided to leave the jurisdiction of the European Union (EU). They had complaints regarding the AMLD5 directive.