BitMEX Buys 268-Year-Old German Bank

Cryptocurrencies continue to make moves into traditional banking. This time it is BitMex purchasing Bankhaus von der Heydt, a 268-year-old German Bank. 

According to the press release on January 18th, BitMEX says they acquired Bankhaus for “the ambitious goal of establishing a one-stop-shop for regulated crypto products in Germany, Austria, and Switzerland, and thus becoming a strong player in Europe.”

News travels fast in crypto, faster than traditional banking money transfers to be sure, and shortly after the announcement of the intended purchase, the deal was done.

According to Bitcoinist:

The company, “founded by our CEO Alexander Höptner and CFO Stephan Lutz,” already paid and signed the documents.

“BXM Operations AG and Bankhaus von der Heydt’s current owner, Dietrich von Boetticher, have signed a purchase agreement, which will be completed only with BaFin’s regulatory approval. The transaction is expected to be complete in mid-2022.”

The BaFin is the Federal Financial Supervisory Authority, “an independent federal institution with headquarters in Bonn and Frankfurt. It “falls under the supervision of the Federal Ministry of Finance,” according to Wikipedia.

BREAKING: BitMEX to acquire 268-year-old German bank to expand #Bitcoin services to Europe pic.twitter.com/P6WWUIGEhG

— Bitcoin Magazine (@BitcoinMagazine) January 18, 2022

Bankhaus von der Heydt is a purchase that makes sense for a move to solidify crypto banking in Europe. In October, Bankhaus released plans to begin working in crypto banking in a deal with Fireblocks. The move made them one of the first banks to deal in crypto in Europe. In addition, Bankhaus already offers blockchain payment services, which is expected to expand greatly with this new deal.

According to CFO Stephan Lutz, BitMEX is particularly interested in beginning its European expansion in Germany because of the countries business-friendly economy.

According to Blockworks:

The announcement is in line with a growing trend of cryptocurrency companies expanding into traditional banking services. Crypto exchanges including Coinbase and Kraken now offer lending and prime brokerage services, for example. 

BXM Operations AG and Bankhaus von der Heydt’s current owner, Dietrich von Boetticher, have agreed on terms — pending approval from German regulator BaFun. 

Bankhaus von der Heydt will continue its banking operations after the deal is finalized, according to BXM Operations AG. Höptner and Lutz will serve on the bank’s supervisory board. 

The acquisition is expected to be finalized by the middle of the year. Terms of the deal were not disclosed.

BXM Operations AG and Bankhaus have agreed to leave the purchase price undisclosed at this time as well as other details involving the pending financial transaction. However, BitMEX has stated in their press release that they intend to run both operations as separate entities with both Alexander Höptner and Stephan Lutz joining the supervisory board.

Alexander Höptner has a very positive outlook on the future of the company, stating: “Through combining the regulated digital assets expertise of Bankhaus von der Heydt with the crypto innovation and scale of BitMEX, I believe we can create a regulated crypto products powerhouse in the heart of Europe.”

BitMEX has had an increased desire to increase its regulation and compliance in part to its October 2020 charges from the CFTC against BitMEX for accepting customers from the USA without proper Anti-Money Laundering measures and the required know Your Customer processes.

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