deal! Germany officially classifies digital assets as financial instruments and does not have monetary legal status

On Monday, the German Federal Financial Supervisory Authority (BaFin) published regulatory guidelines to classify digital assets, including virtual currencies, as financial instruments.


Image source: Pixabay

According to the financial regulator, virtual currency is "a digital representation of value, which is not issued or guaranteed by any central bank or public institution, is not necessarily linked to the currency required by law, and does not have a currency or money Legal status. But regarded as a medium of exchange by natural or legal persons, which can be transmitted, stored and traded electronically. "

The regulator also clarified that multiple entities, including the Financial Action Task Force (FATF), have overlapping definitions of cryptocurrencies, which form the basis of their classification.

The guide also states that the broad definition of cryptocurrencies is because digital assets that were not previously accounting units are not part of any previous asset classification.

Clarification of cryptocurrency regulations

Prior to this, BaFin updated its existing anti-money laundering (AML) laws, requiring companies that provide cryptocurrency custody to obtain operating licenses. It also states that it will not penalize any unlicensed entity that already provides such services. These companies need only indicate that they intend to obtain such a license by March 31 and apply for a license by November 30.

According to local reports, more than 40 German banks are now seeking BaFin's approval to provide digital asset custody services in the country.

BaFin said: "According to the wording of the regulation, it is not necessary for related companies to simultaneously store, manage and protect encrypted assets or private encryption keys used to hold, store or transmit. (Translated from German)

"The purpose of this provision is that escrow means taking care of crypto assets as a third-party service. This mainly includes service providers who store their crypto assets in a collective list, and the clients themselves do not know what these assets are Encryption key used. "

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Can the combination of decentralized derivative exchanges and account abstraction open up the next incremental entry point?

How much will the target audience expand if decentralized contract exchanges can be logged in using Google accounts?


Jump Trading's Crypto Waterloo: Forced to Exit US Crypto Trading Market, Facing Terra Class Action Lawsuit

For Jump Trading, the traditional high-frequency trading giant in the encryption circle, the past year has undoubtedl...


Investment tips for the next bull market: In-depth analysis of the development status and trends of 15 cryptocurrency tracks

Following the regular industry cycle pattern, the bear market has passed halfway. The Ethereum upgrade has brought ab...


Layout for many years but little known? Exploring the full picture and opportunities of the Japanese Web3 encryption market

What is the current situation of the Japanese cryptocurrency market? Who are the key participants? How can one partic...


Red Cross, we have a way for you: it's time for some new technology!

Source: Block rhythm Editor's Note: The original title was "Red Cross, Let's Find a Way for You" ...


Yao Qian: What is the role and value of blockchain construction in epidemic prevention and control?

Author: Yao ago Source: Contemporary financiers Editor's Note: The original title was "Qiao Yao, Science an...