• Car Gonzalez

Germany recognizes Bitcoin as a legal financial instrument

The Federal Financial Supervisory Authority (BaFin) of Germany has officially defined cryptocurrencies as financial instruments, providing further regulatory clarity. This makes it easier for those spending cryptocurrencies and will give some relief to businesses built around them.

According to the translation of BaFin’s press release published on March 2, cryptocurrencies are now classified as the “digital representations of value” that have the following characteristics:

  • Not issued or guaranteed by any central bank or public body

  • Don’t have the legal status of currency or money

  • Can be used by individuals or legal entities as a means of exchange or payment

  • Serve investment purposes

  • Can be transmitted, stored and traded electronically

Just in time before the next major collapse, it's no wonder why you see multiple governments around the world trying to pass crypto regulations this year.