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BaFin Reaffirms Germany's Cryptocurrency Classification
In a press release published on Monday (March 2, 2020), Germany’s BaFin regulator described cryptocurrencies as:
A form of digital asset that has not been issued by any central bank or guaranteed by a public authority, and is not necessarily linked to a currency specified by law, but has the legal status of currency or money, but is acceptable as a medium of exchange for natural or legal persons and can be done electronically Transfer, store and trade.
According to BaFin, its new classification echoes the guidelines of intergovernmental bodies such as the Financial Action Task Force (FATF).
Meanwhile, the news is the second landmark classification of cryptocurrencies to emerge in recent days, with an Australian judge recently ruling that cryptocurrencies are an investment vehicle, meaning cryptocurrencies can be used as collateral in the country.
BaFin’s new cryptocurrency classification announcement is also part of the country’s move to adopt the fifth EU Money Laundering Directive (AMLD5) starting January 1, 2020.
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About Crypto Custody
As part of new BaFin guidelines on cryptocurrencies, cryptocurrency custodians will need a license from the regulator to provide services in the country.
Cryptocurrency custody platforms operating in the country without a license must complete their applications by the end of November 2020, and must be ready to apply by March 30, 2020.
Furthermore, cryptocurrency custodians already registered in other EU countries cannot transfer their operating license “passport” to Germany. Instead, such platforms must apply for approval to continue offering cryptocurrency custody services in Germany.
Earlier in February 2020, it was reported that BaFin had received applications for cryptocurrency custody licenses from no fewer than 40 banks.
In addition to banks, Boerse Stuttgart, Germany’s second largest stock exchange, recently joined a new Bitcoin trading product (ETP), and the country’s stock exchanges are also heavily involved in the cryptocurrency market.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
