Godfrey Benjamin
Vienna Stock Exchange-listed Raiffeisen Bank plans International to offer cryptocurrency trading services to its clients by the end of January 2024.
Raiffeisen Bank Offering Targeted at Vienna Residents
This new development will be achieved in partnership with cryptocurrency exchange Bitpanda and the offering would target customers in Vienna. Notably, Bitpanda had initially signed a letter of intent with Raiffeisen Bank at the beginning of this year.
In an interview, Curt Chadha, the bank’s head of innovation confirmed that the service will first be offered to customers in Vienna where about a quarter of Austria’s population resides. The bank app through which customers will trade crypto will be designed to be user-friendly, similar to how traditional bank transfers are done.
“The customer can use their mobile device to enter Bitpanda through the Raiffeisen app. The experience will be familiar, so confirming a trade will work exactly like an account-to-account bank transfer with the same sort of security customers are used to,” Chadha stated.
Moreover, Chadha highlighted that the offering is targeted at customers who are tech-savvy and wish to make small investments unlike the offerings from other banks that are usually focused on wealthy customers.
Financial and innovative moves such as this one from Raiffeisen Bank further emphasize the growing interest and adoption of digital asset services especially in regions that have begun to provide clarity on crypto rules.
Robust Regulatory Framework in Europe
Europe is one of such regions that have pulled in effort and resources to provide a robust regulatory framework for cryptocurrency, a move that will boost the Raiffeisen Bank. Earlier this year, the European Council announced that it had enacted the first-ever comprehensive legal framework, dubbed Markets in Crypto-Assets (MiCA), to regulate cryptocurrencies, after a rigorous voting process.
Similarly, the International Organization of Securities Commission (IOSCO) rolled out its highly anticipated policy recommendations for the regulation of Crypto and Digital Asset (CDA) markets. The framework addresses issues of investor protection and market integrity risks. Canada recently made a similar move by asking for feedback from banks on cryptocurrency exposure reporting rules.
Ultimately, when the crypto markets in many jurisdictions become highly regulated in such a way that customers’ protection is guaranteed, it is inevitable that more institutional traditional firms like Raiffeisen Bank might make a move into the growing crypto ecosystem.
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