WEG Bank has announced that it has obtained a license to trade and keep custody of cryptocurrency in Estonia. The German bank will now be able to offer its clients in Estonia many crypto related services including crypto to crypto exchanges, crypto to fiat conversion and fiat to crypto conversion. WEG Bank has received approval from the Estonian Intelligence Unit for the trading of cryptocurrency.
Expansion of offerings and services
As the bank has secured a crypto trading license in Estonia, the services they offer continue to expand. Crypto trading is fast becoming a popular financial option across the world, and many banks are working towards providing crypto related services to their clients. Investors and traders look for banks that give them access to a wide range of financial services and WEG Bank is expanding their range of services as they seek to establish themselves as one of the top banks in Europe.
The German Bank is working towards having several kinds of services which they can offer their clients in the jurisdictions they operate in. WEG Bank revealed that it is in the process of trying to get a German trading and custody license for securities. If the bank gets the permit, it would be able to offer clients a more extensive range of services than most of its competitors, and hence, more clients would be willing to open an account with WEG Bank.
WEG Bank’s crypto affiliations
WEG Bank started off as a real estate focused bank, but it has since started branching into providing other financial services. The bank’s shareholders have also become more diverse, and more crypto related firms are purchasing stakes in the bank.
Niqim, a blockchain firm which has created a browser-based payment system, purchased 9.9% stakes of WEG Bank in April. It is through this relationship with Niqim that WEG Bank has been able to transition towards having a sustainable fiat and crypto ecosystem.
After Niqim acquired stakes in WEG Bank, another crypto startup obtained shares in the bank. TokenPay obtained 9.9% of the bank’s share certificates a month after Niqim’s deal. Litecoin Foundation also owns a stake in WEG Bank, and it brings the total number of stakes held by crypto businesses to over 30%.
Having such a relationship with cryptocurrency companies shows that WEG Bank is becoming increasingly crypto-friendly. As digital assets become more mainstream, the bank’s clients will be able to gain access to these assets through their bank easily.
Crypto friendly countries increasing
The number of crypto-friendly countries is growing, and digital assets are well on their way towards becoming a mainstream product. Estonia has always been one of the most blockchain receptive countries. Several blockchain-based startups have set up base in Estonia as they try to establish themselves in Europe.
The position held by Estonia on cryptocurrency could help the industry in its bid to be accepted in other European Union countries. If other states see that blockchain companies are worth giving licenses to, they may also create regulations that are more friendly towards crypto related businesses.