Paradise for Cryptos - Germany

in bitcoin •  7 years ago 

The German regulator, Bafin, did define Bitcoin and similarly structured digital currencies as financial instruments in the form of units of account (§ 1 (11) sentence 1 of the German Banking Act (KWG)) in 2013. Bitcoin was explicitly not defined as e-money as it is not issued by a central issuer.

Bitcoin may be used in the market by market participants without any permission. Also exchange transactions as well as mining are not subject to authorization.
An authorization is only required if a "special contribution is paid to create or preserve such market". If you promote an exchange or a mining pool, it has to be authorized. The required authorization is the same as for other assets, hence already exiting brokers could offer these services easily as soon as the technical infrastructure is implemented.

The Bafin also states in 2017 that stock corporation law does not apply to ICOs. "Tokens are not required to carry any memberships rights, information rights, control rights or voting rights." No legally regulated or checked documentation is required. The Bafin decides on a case-by-case basis whether the any kind of authorization is required pursuant to the German Banking Act (KWG), Investment Code (KAGB), Payment Services Supervision Act (ZAG) or Insurance Supervision Act (VAG).

Germany opens its door wide for trading and use of cryptocurrencies and Initial Coin Offerings!

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I indeed think that Germany and Europe is leading world wide to regulate and event promote the blockchain technology.