According to a press release issued by the German Federal Financial Supervisory Authority (BaFin) on 2nd March, cryptocurrency is officially classified as financial instruments.
From the press release, crypto is listed under digital representations of a value that has not been issued or guaranteed by any central bank or public body but is accepted as a medium of exchange by natural or legal persons and can be transmitted, stored and traded electronically.
In addition to the new guideline, cryptocurrency custodians will need to obtain a license for the regulator to offer services in the country. Meanwhile, for crypto custodial platforms existing in the country without a license, application is open until the end of November 2020.
Reportedly, BaFin’s new crypto classification announcement is a part of the move by the country to adopt the fifth EU Money Laundering Directive (AMLD5) which began on 1st January 2020.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.