Germany declares cryptocurrencies as financial instruments
The regulator, from one of the countries most open to this issue, finally decided to give recognition to digital assets
The Federal Financial Supervision Authority of Germany (BaFin) decided to finally recognize cryptocurrencies as financial instruments.
“Digital representations of a security that has not been issued or guaranteed by any central bank or public body, and that does not have the legal status of currency or money, but by natural or legal persons. But it is accepted as a means of exchange by physical and legal persons and can be transmitted, stored and marketed electronically”, the BaFin said in a statement.
Germany has always shown itself with an open stance towards digital assets. In 2019 they issued a report where they stressed that some banks would allow to store bitcoin in 2020.
The document prepared by the financial authority highlights certain virtues of cryptocurrencies, such as that some tokens can be considered as investment and others as “investment and securities.”
The German agency also addressed security issues, highlighting a report published by KPMG which highlights that since 2017 approximately 10 billion dollars in digital assets had been stolen.
Any cryptocurrency custodian who wishes to operate legally in Germany must receive a license from the country’s regulator. Those who currently work without a license can apply for one at the end of November this year.
K. Tovar
Source: Hardwaresfera
