Germany has now officially defined Bitcoin and other cryptocurrencies, as accepted and recognized financial assets. According to an announcement from Germany’s Federal Financial Supervisory Authority (BaFin), the country will now allow the legal exchange of these digital assets.
According to the announcement, BaFin clarifies that even though they might not ultimately be as valued as money in the country, cryptocurrencies are accepted. BaFin says:
“[Cryptocurrencies are] digital representations 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…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.”
Germany’s acceptance of cryptocurrencies not only helps the status of these assets in the country but also clarifies money laundering expectations by updating related laws.
The new update also demands licenses from custodial companies. BaFin has announced a deadline for March 30, 2020, for all crypto companies currently offering custodial services without a license, to make moves to get one. BaFin also says an application must be submitted latest by the end of November 2020.
Late last year, Germany passed a new law to allow banks to sell and hold crypto.
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