Any crypto firm operating from German soil might have to struggle in the upcoming quarter as the country’s financial regulator, BaFin is preparing to implement new Anti Money Laundering regulations, which cover crypto assets as well as security tokens.
According to experts, it’s not exactly a German crypto regulation, but much rather a preventive measure to avoid any unwanted illegal transactions through the blockchain.
Recognizing cryptocurrencies as financial instruments may not be the best news for those against the crypto tax, but in the eyes of BaFin, it’s the best way to track most of the crypto reserves in the country.
It does look like German crypto regulation though
No matter how we look at it the EU’s anti-money laundering laws which are now being pressed inside of Germany are a method of bringing Bitcoin and all other crypto assets under a common regulatory framework.
The mandatory registration of crypto companies and customer due diligence resembles the operations of any other Forex or Stock brokerage, ultimately putting the anonymity and value of the blockchain under pressure.
As it stands right now, most experts are split in terms of opinions. Some say that it’s a necessary law in order to prevent even stricter laws as money laundering cases with cryptos mount, while others say that it goes against the very foundation of the blockchain.
Regardless though, BaFin has voiced its opinion on the matter, which may not be final, but does seem to be quite firm.
A German crypto regulation followed up by taxes is a definite possibility by the end of 2019.