With effect from the coming New Year, Germany is planning to secure itself against Money Laundering. The major inclusion to the businesses complying with the BaFin the coming year is Crypto-Business. This new regulation tends to identify crypto assets as financial resources.
In accordance with this new law from the Federal Financial Supervisory Authority - BaFin identifies specifically the cryptocurrency exchange and wallet providers, mandating them to obtain a license. This license would allow them to operate freely in Germany. Though, the authorities have not provided with any compliance specifications which implicates no timeline has been defined by authorities. The compliance advised complying with the the regulatory watchdog to avoid any punishment.
What Germany Should Expect?
The public has a slightly different opinion about the implementation of these new laws. Officials have been reported quoting the unusuality of these new rules which are being enacted.
The Free Democratic Party’s member, Schäffler, of the German Federal Parliament insisted that the implementation of AML laws and mandating compliance by the crypto-businesses would hurt innovation.
“The government is now forcing cryptocurrency trade platform providers to overrun the country and seek another location in the EU,” said Schäffler in a report.
In another report, a partner of a reputed law firm was, indeed, pleased with the new bill being passed and implemented. As he said, “The technology has not yet been accepted by institutional investors because a reliable legal framework is missing.” He emphasized on institutional participation through these rules into the crypto space. He also added, that if possibly there could be more regulatory clarity, the participation would have been easier and smooth.
You would be surprised to know that Bafin approved a 250 million Euros token offering by Fundamental, a blockchain startup.
If these reports are to be believed, the environment may heat-up a little for crypto-businesses in Germany. This may open up new horizons for countries like Estonia for crypto and blockchain-based startups.