tokens are financial instruments - so decided the German financial supervision BaFin. According to his official position, Bitcoin and all others kryptowaluty should be regarded as assets in which, according to existing traditional financial law, you can invest.
Tokens are financial instruments
Cryptocurrencies are no longer a new phenomenon. Bitcoin has been with us for over 10 years. However, it entered the salons relatively recently.
People began to be massively interested in cryptocurrencies just a few years ago.
Then they noticed them regulators and financial institutions.
For many months, various institutions have been trying to more or less successfully introduce financial instruments that allow investing in bitcoin and other cryptocurrencies.
It started with futures CBOE.
They currently exist CME futures on bitcoin.
However, the US regulator has not yet allowed direct investment in physical bitcoin through ETF financial instruments.
Legalization of cryptocurrencies
In 2020, so far everything is going in the right direction for the cryptocurrency market.
A few days ago India has legalized cryptocurrencies.
Until now, buying them has been illegal there. The removal of the ban in the world's second-largest country is a fantastic opportunity to develop the token market in India.
Cryptocurrency status in Germany
The German financial regulator BaFin has published an official position regarding status tokens, Bitcoin and others cryptocurrency in the banking law in force in Germany and the Anti-Money Laundering Act. As indicated, cryptocurrencies, bitcoins and all tokens are financial instruments.
So cryptocurrencies in Germany are a digital representation of value that:
- it was issued by no bank
- not subject to central bank guarantee
- is not guaranteed by any public entity
- there is no legal status for the currency!
- but it can be used as a means of exchange or payment by natural and legal persons
- serves investment purposes
- can be moved, stored and exchanged electronically
Until now, cryptocurrencies have not been included in any category existing in German financial law.
Now everything has become much simpler.