Crypto companies in Germany will need BaFin license

Crypto companies in Germany will need BaFin license

All crypto businesses in Germany will have to acquire a Federal Financial Supervisory Authority (BaFin) license starting from 2020. The new rules are in connection with the Anti Money Laundering (AML) regulations that soon will come into force in the Federal Republic.

Brokers that offer crypto CFDs however will not be required to get such a special license, although all crypto derivatives fall under the current regulations as outlined by the European Securities and Markets Authority (ESMA).

The new BaFin rules will oblige all crypto currency businesses like crypto exchanges and crypto wallet providers to be licensed by BaFin and to comply with AML regulations. This is happening because as of January 2020 all crypto assets in Germany will be considered financial instruments.

The broader implementation of the AML rules represents the first attempt to regulate the crypto industry in the EU.

Basically all crypto businesses will have to know their clients and to report any suspicious deals and activities.

Similar measures are currently considered in Australia and the UK.

Recently, however the German Central Bank noted that “the potential benefits of Facebook’s Libra coin should not be suppressed despite regulatory uncertainty and the potential risks”.


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