German encryption companies will need to obtain a license from the German Federal Financial Supervisory Authority next year.

On July 24, it is reported that starting next year, the new anti-money laundering (AML) regulations will require German cryptocurrency companies to hold a license issued by the Federal Financial Supervisory Authority (BaFin). The new regulations will require cryptocurrency-related businesses such as exchanges and wallet providers to obtain BaFin licenses and comply with the “anti-money laundering” regulations, as from January 1, 2020, encrypted assets will be considered a financial instrument. According to local media FAZ, Schaffler, a member of the German Bundestag, said that the government has damaged local innovation and forced the encryption business to move to other EU countries.