Various countries across the globe are conceding the worth of cryptos and their financial status. USA, Canada, Australia are some of the countries where bitcoins started as a positive stance and their government has declared the coin legal and allows people to use it for trading and many other transactional purposes. However, there are countries where cryptos are yet not permissible to use. No one can deny the fact that the use of cryptos and bitcoins is rapidly growing with each passing day and it seems the speed will be paced up in coming months. There will be a time in future where all the countries and the big brands will be accepting cryptocurrencies to make buying and selling mechanism work. This is why many countries are seeing bitcoins, cryptocurrencies, and other financial instruments legally.
Jumping on the bandwagon, Germany is the new name in the list to classify cryptos and all kinds of digital tokens legal. Germany recently recognized Bitcoin and Crypto as financial instruments and made it clear that these cryptos will be seen as a digital representational state in the country. The guidelines were released on Monday, 2 March 2020 by the country’s Federal Financial Supervisory Authority (BaFin). The press release issued by BaFin mentioned that –
“[A] digital representation of a value that has not been issued or guaranteed by any central bank or public body and is not necessarily linked to a currency specified by law and that does not have the legal status of a currency or money, but is accepted as a medium of exchange by natural or legal persons and can be transmitted, stored and traded electronically.”
Cryptos are recognized as Financial Instruments by BaFin – More to the News
- Apart from classifying crypto as a financial instrument, Germany has taken one more step to operate cryptos legally in the country.
- They have mandated to obtain a license for crypto custodians if they are already operating in the country or planning to do so.
- It is also clearly stated that crypto custodians who are already registered in the other EU nation cannot just furlough their license to Germany.
- They need to apply for a separate license if they are willing to offer crypto custody services in the country.