The regulation getting tougher for cryptocurrency businesses in Germany. The companies will reportedly have to pass the corresponding certification with the Federal Financial Supervisory Authority (BaFin).
According to the local media, German financial authority will launch new rules beginning from January 1 2020. It was stated that cryptocurrency assets will get the status of financial instruments entailing corresponding obligations of trading platforms and other crypto-related service providers.
At the same time, officials have a different opinion regarding this decision. For example, Frank Schäffler, the member of Bundestag Free Democratic Party believes that this initiative will hamper the innovative sector of the country, making crypto-related companies start looking for other regions and jurisdictions where the business environment is more favourable.
At the same time, another expert thinks that the sector must have regulation, which may secure further transparent development. In particular, he said that institutional investors refuse to join the market seeing a lack of legal framework.