March 11, 2020 by Clementine
In a press statement, the authority German federal financial supervisory (Bafin) has ruled on the qualification of the crypto-currency into its financial ecosystem. The crypto is not a “currency” with a legal status but it is considered as a medium of exchange.
Crypto finds its place in Germany
Although many analysts see the crypto-currency as a future digital currency capable of replacing the fiat currencies, considered as a mere legal instrument to have its place in the financial ecosystem is already a first step.
In Germany this is Bafin, which has qualified as crypto-currency “a medium of exchange to natural persons or legal entities “that” may be transmitted, stored, and exchanged electronically “. In other words, the authority’s main financial of the country considers the crypto-currency as a legal tender that can be used as security in the country.
The custody of crypto-currencies now regulated
The Bafin has defined the crypto-currency as a medium of exchange that can be stored electronically, however, childcare services are another topic that requires permissions. In this case, the financial authority indicates that the custodians of crypto-currency must obtain a license.
On the other hand, other platforms that provide similar services, must comply with these regulations and obtain accreditation before the end of the month of November 2020 to continue their activities.
Note, however, that in the beginning of February, more than 40 German banks have submitted license applications to the authority while the larger financial institutions such as Boerse Stuttgart) took charge of the financial products exchangeable for stock exchange such as the FTE Bitcoin Traded Product.
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Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting.