The German BaFin clearly defines the conditions for the Crypto business
The German BaFin has released its document for the crypto companies called Kryptoverwahrgeschäft.
The cryptocurrency business in Germany was added to the Banking Act (KWG) on 1 January 2020 and is incorporated as a new financial service.
Initiated was by the Fourth European Money Laundering Directive.
From now all companies that want to provide this service need permission from BaFin.
In this document Kryptoverwahrgeschäft , you will find precise specifications and new legal requirements for crypto business, including precise citations of the laws concerned.
“§ 1 Abs. 1a Satz 2 Nr. 6 the German Banking Act (Kreditwesengesetz – KWG) defines the crypto custody business as the safekeeping, management and security of crypto values or private cryptographic keys that serve to hold, store and store crypto values to transfer to others.”
- BaFin is one of the largest financial supervisors in Europe. With more than 2,600 employees, it carries out a sector-specific audit approach and risk based on recognized European supervisory standards.