German financial regulator classifies cryptocurrencies as financial instruments

According to Finance Magnates, the German Financial Supervisory Authority (BaFin) announced on Monday that it will classify cryptocurrencies as financial instruments. According to financial regulators, virtual currencies are a digital representation of the value issued or guaranteed by no central bank or public institution, are not necessarily linked to fiat currencies, and have no legal status as currencies. However, it is regarded as a medium of exchange by natural or legal persons, which can be transmitted, stored and traded electronically.