Cryptocurrencies in Germany as Financial Instruments

In Germany cryptocurrencies are officially financial instruments. To clear the field of any doubt is the German financial supervisory authority, the Paphos.

In a Press release, BaFin establishes once and for all that cryptocurrencies are financial instruments. For this reason he decided to provide guidelines for crypto custody services.

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First, it is established that digital goods (such as cryptocurrencies) fall within these provisions. These goods  they have value even if they have not been issued by public bodies or central banks, but which people exchange electronically and accept as a payment system, or have an investment purpose.

Indications are then provided for the licensing requirements for operating with these financial instruments. At this point, as with all financial assets in Germany, written authorization from Bafin is required to operate.  Regardless of whether the service provider is a natural person, legal person or partnership. Companies already operating with cryptocurrencies will have to comply by November 2020. Those operating in Europe will still have to apply for BaFin.

Cryptocurrencies and regulation in Germany

These clarifications are in addition to the new legislation that entered into force in Germany on January 1 on the fight against money laundering. Provisions that integrate with the broadest European legislation on the subject, the AMLD.

This opening of the German authority comes after it has received more 40 requests from as many financial institutions who intend to offer cryptocurrency services. Among them, Solaris Bank had received the authorization and can operate as a provider of crypto custody services.

Germany therefore shows itself open to the changes introduced by blockchain technology and seems ready to challenge the changes that these innovations entail.

It is also proof that one cannot do without regulation. Having clarifications on the regulatory framework within which to move will only attract more investors and give way to the sector to expand.

 

Source: Cryptonist.ch

 

Luca from The ForeRunners

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